10/19/2026
We really need to spread the word about this lie about the proposed California billionaire tax.
Prop 40 absolutely does not say that the legislature can amend it to turn it into a repeating tax or a tax on people other than billionaires. Saying otherwise is a lie based on what seems to be an intentional misreading of the text.
There are four parts to the text that change the law.
Section 4 is a constitutional amendment. The legislature cannot change the constitution. Only a vote of the people can do that. And this constitutional amendment's first words are, “This section authorizes and enables a
one-time tax on the accumulated wealth of California billionaires.” Those words would be frozen into the constitution. It can't be anything other than one-time, nor can it ever be anything other than a tax on billionaires.
Section 5 changes the Government Code to define the “2026 Billionaire Tax Reserve Fund” that will hold the money collected by this tax.
Section 6 adds one sentence to the Revenue and Taxation Code (RTC) to say that this tax is not deductible.
Section 7 also adds to the RTC. It creates the administrative rules to govern the tax such as audits by the Franchise Tax Board. Its very first sentence says “This part shall be known, and may be cited, as the 2026 Billionaire Tax Act.” The opponents of Prop 40 try to confuse you with a sentence near the end of Section 7 that says, “The Legislature may amend the 2026 Billionaire Tax Act, by statute passed in each house of the Legislature...” But note that this sentence uses the same words as in the first sentence of Section 7—“the 2026 Billionaire Tax Act.” Those words have been defined to mean Section 7 and only Section 7. It can't possibly mean modifications to Sections 4 through 6. And even if it did try to say the legislature could amend Section 4, it can't. The procedure to amend the constitution is clear, and this isn't it. The constitution does not under any circumstances allow the legislature to amend the constitution.
Putting “one-time tax on the accumulated wealth of California billionaires” into the constitution makes it perfectly clear that that is all this tax will ever be. Scaring you with a clear lie is despicable.