Oct. 21, 2026 7 AM PT
To the editor: I found columnist Michael Hiltzik’s analysis of Proposition 40 (the billionaire tax) incomplete (“The billionaires’ campaign against the California billionaire tax rests on conjecture and fear-mongering,” Oct. 16). It didn’t mention influential supporters of the tax such as Rep. Ro Khanna (D-Fremont) and former gubernatorial candidate Tom Steyer, himself a billionaire, both of whom believe the uber-wealthy are too busy shielding their fortunes and not acknowledging their debt to the society that made their successes possible.
Also, I am unconvinced that the state will lose gobs of money should the tax pass.
Most billionaires take nominal salaries, and their stock options are not taxed unless exercised. They can borrow against their wealth (which also is not taxed), and so the only way California would take a hit as big as the tax opponents warn is if the billionaires actually moved all their companies (rather than just themselves) out of state. That seems unlikely because moving a business physically is complex and affects the lives of thousands of workers. Plus, at the end of the day and despite all its problems, California is still a pretty cool place to live.
So in my book, it’s yes on Proposition 40 and no on Propositions 41 and 42, which are stealthily designed to undo 40 if it passes.
Ann Bowman, Santa Monica
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To the editor: I’m opposed to Proposition 40, but not for the reasons stated in this column.
I’m not sympathetic to billionaires, but a one-time tax is not the way to fix our state’s financial problems. We are in this situation because our state government is spending more than it’s bringing in. A 5% tax on billionaires is a giant, one-time pot of income. It could pay down a little bit of our debt, or keep California’s services in place that are well-intentioned but unaffordable. But it’s not a long-term solution.
Our state legislators need to bring the budget back to a manageable level. Proposition 40 is a cop-out by our legislators who don’t want to do the unpopular work of bringing our spending into line.
Sue Raymond, Montrose