Proposition 40
IMPOSES ONE-TIME TAX ON CERTAIN TAXPAYERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.
Imposes 5% tax on certain taxpayers with assets over $1 billion; revenue primarily for health care. Exempts revenues from constitutional requirements for school funding and spending limit. Fiscal Impact: Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires.
Criteria:
1-Intent and structure of the tax (i.e. a % rate or other amount of tax).
2- Amount of tax generated per year and the duration of the tax.
3- Is this a Special or General tax? (Not normally described in state taxes, but the more specific it’s described, the more credit they should receive).
4- Where is the money specifically going? (particularly if a special tax).
5-Is there an existing or similar tax already in place? If so, that tax information should be included.
****** Extraneous language unrelated to the matter (-1 point )
Score: 2.5
Comments: The score was lowered from the maximum of five because it should have provided some more specific justification as to why the proposition was needed and what situation would remain if the Proposition doesn’t pass. “Assets” subject to this tax should be better defined. “Exempt revenues” is also unclear.
