California voters will consider Proposition 40 in November, a measure proponents describe as a "billionaire tax" aimed at saving healthcare services and addressing economic imbalance across the state. Tim MacKenzie, a Mountain View resident and a steering committee member of the Silicon Valley chapter of the Democratic Socialists of America, advocates for the proposition, asserting that workers have experienced decades of wealth transfer to billionaires.
MacKenzie points to the current healthcare situation in California as "dire straits," marked by increased insurance premiums and cuts to essential social services. This follows last year's H.R.1, or the "Big Beautiful Bill," which he states slashed healthcare funding to provide tax cuts for the wealthy. In response to local impacts, voters in Santa Clara County previously passed Measure A to support local hospitals. MacKenzie also notes an alleged withholding of funding by a "hostile federal government," which he suggests is intended to worsen the crisis and encourage opposition to Proposition 40.
Concerns about the ultra-wealthy fleeing the state due to such a tax are "unfounded," according to MacKenzie. He states that despite frequent threats to relocate when facing new taxes, the wealthy "never follow through." As an example, the Massachusetts millionaire tax on high earners reportedly generated more than double the anticipated revenue for three consecutive years. MacKenzie emphasizes that "wealth flight is a lie despite protestations otherwise," arguing that people generally prefer to remain where they live. He cites New York City Mayor Zohran Mamdani's Pied-à-Terre tax on second homes as another instance where such threats led to increased tax revenue.
Even if some ultra-wealthy individuals were to leave, MacKenzie argues that Proposition 40's analysis indicates the state would still benefit. The tax considers California residency as of January 1, meaning any departure after this date would not avoid the initial obligation. The measure is predicted to generate "tens of billions of dollars." While there is a "potential" for hundreds of millions of dollars in lost revenue annually in subsequent years, MacKenzie suggests it would take a century for the state to incur a net loss. This timeframe, he notes, would provide ample opportunity to address and close loopholes that billionaires currently use to pay lower tax rates than many workers.
Some residents canvassed by MacKenzie expressed opposition to Proposition 40 because it is a temporary tax on billionaires. However, MacKenzie counters that voters have the power to make the tax permanent. He draws a parallel to Proposition 3, a measure on the ballot this year that would allow voters to permanently extend a tax on high earners. MacKenzie stresses that making a temporary tax on the ultra-wealthy permanent is only possible if the proposition passes in the first place.
MacKenzie frames Proposition 40 within a broader context of political and economic challenges. He asserts that "political democracy has been under siege" since before Citizens United. He also claims that Elon Musk spent nearly $300 million on the 2024 election with the aim of becoming the "world’s first trillionaire," and alleges that Musk and DOGE "dismantled our government," leading to specific public health issues. In California, MacKenzie states that billionaires targeted by Proposition 40 have funded competing Propositions 41 and 42 in an effort to introduce "poison pills" to invalidate the billionaire tax. He also notes that Governor Gavin Newsom, whose political career began with billionaire support, opposes the state tax while supporting a "nonexistent federal tax." According to MacKenzie, the degradation of political democracy stems from a lack of economic democracy, where workers create societal value but are "alienated from the fruits of our labor."
From MacKenzie's perspective, voting for Proposition 40 offers a pathway to begin reclaiming what he describes as belonging to workers, and to help strengthen public services across California.
