What Proposition 40 Means to You

You've probably heard about Proposition 40 on the November ballot. 

It's being called the "billionaire tax." 

It would put a one-time 5% tax on Californians worth more than $1 billion.

Sounds like it only hits the ultra-rich, right? 

Not so fast. 

Here's something most people don't know.

If Prop 40 passes, every California resident would have to file a declaration with their 2026 tax return according to BDO, a major national accounting and tax advisory firm. 

You'd either need to attest that your net worth is under $1 billion, or you'd have to disclose your full net worth and pay the tax.

For most of us, that's just a checkbox on a form. 

But it's a new legal obligation that didn't exist before. 

And you'd be signing it under penalty of perjury.

Here's what really concerns me. 

Once the state builds the system to collect these declarations, lowering the threshold gets a lot easier. 

And that's not just a worry. 

Congressman Ro Khanna, one of the strongest supporters of the measure, has openly said the target could drop to $50 million down the road.

We've seen this play out overseas too. 

Norway started with a wealth tax on the super wealthy. 

Now they tax net worths of roughly $200,000.

The average California homeowner easily meets this threshold.

The Netherlands taxes assets above roughly $68,000. 

Once the machine is built, it usually moves in one direction.

I'm not telling you how to vote. That's your call. 

But before you fill out your ballot, know that this is more than just a tax on billionaires. 

It could be the start of a system that would affect a lot more people over time.