Proposition 41
Require audits of new tax programs
This proposition would make it harder to pass new special taxes by requiring the state auditor to review any special tax proposal before it goes to voters. The auditor would assess whether the program that would receive funding could cut spending by at least 10% annually. Any new special tax approved by voters would count toward California’s spending limit, potentially triggering automatic refunds that reduce funding for other state programs. If this proposition receives more votes than Proposition 40 (a wealth tax on billionaires), Proposition 40 is nullified, even if Proposition 40 also passes.
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Summary
Support
Supporters say key social programs are not getting enough funding despite California’s high taxes. They argue the state auditor should assess whether the programs that would benefit from special taxes are spending money wisely. Supporters also want these special taxes to count toward the state spending limit, making tax rebates to Californians more likely.
Oppose
The chief opponent is SEIU-United Healthcare Workers West, the sponsor of Proposition 40. The union argues that Prop. 41 is designed to trick voters into unknowingly blocking a wealth tax on billionaires. Prop. 41 isn’t about auditing waste in public programs, the union says; instead it’s a way for billionaires to avoid paying taxes once on their huge wealth.
People and organizations
Support
- Reform California
- Google co-founder Sergey Brin
- Chairman and CEO of Wonderful Company foods Stewart Resnick
Oppose
- SEIU-United Healthcare Workers West
