California voters pass Prop. 42, blocking future wealth taxes
California's Proposition 42, which prohibits new taxes on personal property such as business holdings, intellectual property and financial assets, was leading at 54% with nearly 60% of votes counted. Billionaire-backed and endorsed by Gov. Gavin Newsom, the measure was placed on the ballot to counter Proposition 40, a competing billionaire wealth tax measure backed by SEIU-UHW and Rep. Ro Khanna. The nonpartisan Legislative Analyst's Office says Prop. 42 will make it harder for state lawmakers to raise taxes in the future and could reduce state revenue, though the amount is unclear; it also bars retroactive taxes except during a budget emergency. The ban is not permanent and could be undone by a future ballot measure, but California lawmakers have never advanced an asset tax proposal past committee despite Democratic supermajorities. The article notes California has faced four consecutive years of deficits leading to healthcare cuts, and that federal cuts to Medicaid will add pressure on Gov.-elect Xavier Becerra to backfill losses.