Sen. Bernie Sanders, a hero among the nation’s progressive voters, stumped in Southern California on Monday for a wealth tax on the California ballot in November that has drawn hundreds of millions of dollars in campaign spending.
“What you are showing people from coast to coast and all over is that, yes, we can take on the greed of the oligarchs,” said Sanders (I-Vt.), who called Proposition 40 the most important ballot measure in the country. “Yes, we can create an economy and a government that works for all of us, not just the 1 percent.”
Sanders name-checked billionaire tech founders including Elon Musk of SpaceX, Mark Zuckerberg of Meta and Google co-founder Sergey Brin, whose mentions were repeatedly met with boos from the crowd gathered at the Novo in downtown Los Angeles.
Labor leaders, speaking earlier on Monday at a union training facility in La Palma, argued that although the billionaires tax is billed as a one-time tax on the assets of the state’s wealthiest residents, it includes a loophole that would allow state lawmakers to tax the savings and retirement accounts and home equity of all Californians.
“In the trades, we know you always read the blueprints and you always read the fine print,” said Xochitl Medrano, the political director for the district council of the Ironworkers of the State of California and Vicinity. Medrano was surrounded by union workers chanting, “No on 40!”
Foes of Proposition 40 attend a rally on Monday at the Ironworkers Training Center in La Palma.
(Eric Thayer/Los Angeles Times)
“Our workers are not billionaires; they are working people. After 20, 30, or even 40 years of breaking their backs on the job sites, our members have the opportunity to have a decent pension, some retirement savings, and equity in a home that they’ve been working to pay off,” she said. “That’s not wealth handed to them. That’s sweat equity. … We won’t stand by and let a tax that’s supposed to target billionaires turn into a trap door for working families.”
Proposition 40 is among the most contentious issues on the Nov. 3 ballot. The measure was crafted by a healthcare union to offset $100 billion in impending federal healthcare funding cuts approved by congressional Republicans and signed by President Trump last year. Millions of Californians could lose their healthcare coverage because of those cuts.
There are two opposing measures on the November ballot, Propositions 41 and 42, that would nullify the billionaires tax if either receives more votes.
About 45% of likely voters supported Proposition 40, while 42% opposed it and 13% were undecided in a late September poll by UC Berkeley and the Los Angeles Times. That’s a decline in support compared with a poll six weeks earlier, when 48% of likely voters supported it while 41% opposed it.
The proposal has drawn more than $300 million in campaign contributions, nearly all against it. Ballot measures are not subject to caps on campaign donations.
Sanders was joined by Rep. Ro Khanna (D-Fremont) and artists including the rapper Common, who called for “them billionaires to pay up” between freestyle verses. Shepard Fairey, known for his famous portrait of President Obama, unveiled banners in support of the wealth tax campaign, which served as a backdrop on the event stage.
Rally attendee Datosha Williams, an SEIU-UHW member who works in healthcare customer service, said Proposition 40 is a backstop to federal healthcare cuts, which could lead to hospital closures around the state.
“My biggest fear is that I will see some of my coworkers lose their jobs,” she said. “My biggest fear is that my 8-year-old son, who is asthmatic, will have long waits in an ER.”
At the event at the Ironworkers Training Center in La Palma organized by labor leaders to oppose the wealth tax, apprentices attended workshops about rigging and collective bargaining rights.
“We’re not opposed to making the wealthy pay their fair share. We’re not opposed to creating a high-quality and low-cost health insurance plan for Californians,” said Andrew Gonzales, the council representative for the Los Angeles and Orange Counties Building and Construction Trades Council. “We just don’t think Prop. 40 is the right vehicle to go about that.”
Gonzales pointed to the volatile state budget’s dependence on tax revenue from wealthy Californians, some of whom have proactively moved out of the state because of the proposal.
“That’s already having an immediate impact to the state’s budget,” he said. “So we already see the danger that can occur.”
