Rachel takes the lead this episode for a deep dive into who pays for what in California, using this November’s Proposition 40, aka “billionaire’s tax”, as the jumping-off point. She and Felicia trace how direct democracy landed in California in the first place. From there, Rachel talks through Prop 13, the 1978 property tax revolt that still shapes housing and school funding in California today, and a story about deceptive campaign mailers from a 2020 San Diego mayoral race that still makes her mad.
(*Raises fist to sky*)
Then it’s on to Prop 40 itself, a one-time 5% wealth tax on roughly 200 California billionaires, projected to raise somewhere between $40 and $100 billion for healthcare, food assistance, and education. Rachel breaks down who’s backing it and who isn’t. She also brings in Props 41 and 42, two measures bankrolled by tech and finance billionaires that could legally cancel Prop 40 out entirely if they earn more votes. It’s a clear look at how California’s ballot system can be turned against the very people who built it, and a reminder that this is complicated and we honor and respect those who don’t have the time, energy, or bandwidth to take this on.
If you do nothing else, we ask you to listen to this episode, and share it with your Californian friends!
Chapter List
0:08 — Welcome & the Topic: Who Pays for Stuff in California (Prop 40, the Billionaire’s Tax)
4:00 — Direct vs. Representative Democracy: How California Got Its Propositions (1911)
6:14 — California’s First Propositions: Women’s Right to Vote
10:51 — Prop 13 (1978): The Property Tax Revolt Still Shaping California
17:21 — Deceptively Written Ballot Measures
21:31 — What Prop 40 Does: The Billionaire’s Tax, Explained
27:36 — Who’s For It, Who’s Against It
39:29 — The Poison Pill: How Props 41 and 42 Could Kill Prop 40
51:37 — Follow the Money: The Billionaires’ PAC Funding the Opposition
Further Reading & Sources
Ballotpedia: Prop 40 — the full text and background on the billionaire’s tax measure, including proponents, opponents, and funding
Ballotpedia: Prop 41 — the competing measure at the center of the poison pill fight, including proponents, opponents, and funding
Ballotpedia: Prop 42 — the full text and background on the retirement savings measure, including proponents, opponents, and funding
CalMatters — voter guide breakdown of Prop 42
Legislative Analyst’s Office — the state’s official, nonpartisan fiscal analysis of Prop 40
The Lever — an interview with SEIU leader Dave Regan, author of the proposition
Better Future Media — economist Gabriel Zucman’s take on the wealth tax model behind Prop 40
SEIU-UHW — the union’s case for the measure (they wrote it!)
Hoover Institution — the conservative think tank’s analysis and revenue estimate for Prop 40
