The Rev Dr. Rick SchlosserCalifornia Church IMPACT recommends a NO vote
This measure, a constitutional amendment, would permanently prohibit the kinds of taxes proposed in Proposition 40 on individuals with $1 billion or more in income and assets. Part of what Proposition 40 would tax is retirement holdings and savings for those above that threshold.
The public case for Proposition 42 leans heavily on concern for the retirement savings of ordinary working people — as if any of us hold $1 billion or more in those accounts. (If you do, we’d be happy to discuss a tax-deductible donation.)
Proposition 40 has no bearing on “widows and orphans” and won’t touch the vast majority of Californians in any way. Nor will it risk turning billionaires into people sleeping under bridges. This is a shameless attempt to make voters fear losing their hard-earned savings and retirement plans, when the measure it targets applies to billionaires only.
Small businesses would also be unaffected. The legal definition of a small business is 500 employees or fewer, assets not exceeding $15 million (not billion), and annual revenue of $5 million or less. A few industries qualify as small business outside that threshold, but even those remain in the millions-of-dollars range, not billions. None would be touched by Prop. 40.
This measure is a cynical attempt to tug at voters’ heartstrings with unwarranted fears about harming “small business.” Whether one supports or opposes Proposition 40, these two provisions — 41 and 42 — should be turned down either way. They serve no public interest and only add confusion to the ballot.
Recommend a NO vote