IF you are still in California, you probably have already heard of the Billionaire Tax or the Wealth Tax… it’s Prop 40 and will be on the California ballot this November.
If you’re in California and this is the kind of stuff you stay up on, then you’ve probably watched several of Ramin’s videos on YouTube.
Ramin recently talked about Prop 40 and what it could mean for you… if you are still in California. Bottom line: It’s not good.
What is California's Prop 40?
Proposition 40 is touted as a one-time tax on billionaires to fund things in California such as healthcare, education and food assistance programs. In short, this is who it says it applies to:
The initiative would enact a one-time tax of 5% on the accumulated wealth of taxpayers and trusts with covered assets valued over $1 billion, including shares of capital stock, bonds or other evidences of indebtedness, and any legal or equitable interest. The tax would be retroactive and apply to taxpayers residing in the state as of January 1, 2026.
And this is what it’s supposed to do:
The initiative would create the 2026 Billionaire Tax Reserve Fund, where all taxes, interest, and penalties resulting from the initiative would be deposited. The fund would have two sub-accounts: the Billionaire Tax Health account, where 90% of the revenue would be deposited, and the Billionaire Tax Education and Food Assistance Account with the remaining 10% of revenue. The initiative would fund Medi-Cal and other health coverage programs for low- and moderate-income individuals…
Will Prop 40 Pass in November?
From the Wikipedia page on Prop 40, various recent polls have been conducted and it seems obvious that Prop 40 will pass on the November ballot… likely overwhelmingly.
While you’re on this Wikipedia page, make note of the supporters behind this… particularly the healthcare related unions. Keep that in mind for a moment.
Hidden Details in Prop 40 You Need To Know
As Ramin exposes in his YouTube video, which also includes clips of Carl DaMaio saying the same thing, the detail that is absent from the headlines and all the talking-heads in the media is this; buried way back on page 26 of the initiative is a one-sentence paragraph that says this:
The Legislature may amend the 2026 Billionaire Tax Act, by statute passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with and furthers the purposes of the 2026 Billionaire Tax Act.
What does this really mean? I’m no lawyer so you might want to consult one for the authoritative answer, but my guess is that the California Legislature can change this once it’s approved by the voters on November’s ballot… and that change must be “consistent with and furthers the purposes of the 2026 Billionaire Tax Act.”
As Ramin states, once Prop 40 is passed by the voters, it can be changed by the Legislators… to make the tax continue year after year and/or apply to anyone who has assets over some amount.
What Could Prop 40 Cost YOU?
Ramin runs a worse-case-scenario (well, in California, things can ALWAYS get worse). The current average home price in California now is $930,000. He rounds this up to $1m to keep the math simple. If the owner has a $400,000 mortgage, then there is $600,000 in equity.
Here’s the painful part; take that $600,000 in equity times 5 percent… that results in $30,000. That $30k is what the owner would owe on the house the first year… and another $30k the next year… and another $30k the year after that… and on and on.
More Details in Ramin's YouTube Video
Check out this short and direct video that Ramin has made. He makes some great points that YOU should really consider if you’re living in California… or even if you’re thinking of moving to California.
***UPDATE - NEW RAMIN REALTALK VIDEO***
Just wanted you to know about Ramin’s new video about how California will tax you AFTER you leave!!
What's Treasure Valley Dave's Take on Prop 40?
See what I have to say about Ramin’s video… and how important these decisions made at the California ballot in November can change the future in some very significant ways.
Treasure Valley Dave's Thoughts
A few things come to mind when looking at all of this. One is that this measure will give 90 percent of the tax collected to healthcare. Could be why healthcare organizations are huge supporters. (10 percent goes to education and food assistance.) These unions and other supporters of Prop 40 are also big supporter (donors) to politicians… like those in the Legislature. Another thought is that this measure will easily be voted in by the Californian voters in November. Also, this Prop 40 has a look-back component… so people will owe taxes because of this measure even before the measure becomes law.
Like Ramin said, the one thing that is purposefully hidden is that once Prop 40 is passed by the voters, it can be changed just with a vote of the Legislature… you know, those very same people who recipients of directed support and campaign funds.
It seems to me, as it did to Ramin, knowing that Democrats in California’s Legislature have a supermajority in both chambers, knowing that organizations receiving these new tax funds are hugely influential in state politics, knowing that once implemented in California, taxes just never seem to go away… knowing these things paints a seriously challenging future for many folks in California.
I suggest that if you are happy with California and the direction it’s taking… please stay and enjoy! If, on the other hand, you too see the writing on the wall… don’t hesitate, make a plan, and get out while you can.
If Mareen (she also relocated from California) and I can help you get questions answered or if now is your time to start your fact-finding process about what Idaho is like, we are here to help you and to share all the best and current information so you can make the best possible decisions for you and your family. That’s where Mareen and I come in… let us help answer your questions about buying a home, selling a home or relocating to the Treasure Valley! Just give me and Mareen a call, text or email… or smash that Contact Us button and let’s get answers for your questions! Maybe we can get a coffee or a nice lunch! 
