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California is known for being an early adopter on progressive policies. And now, voters are deciding whether to impose a novel approach to taxing the rich - a one-time fee on billionaires. It's popular at a time when income inequality has become a big issue, but Democrats in this heavily Democratic state are divided. KQED's Laura Fitzgerald asked Californians how they're feeling about the measure.
LAURA FITZGERALD, BYLINE: California's voters are being asked to weigh in on Prop 40. It would impose a one-time 5% tax on people in the state with over a billion dollars of wealth, like stocks, bonds and artwork. So someone worth $100 billion would owe 5 billion to the state. The leader of a large healthcare workers union, who drafted the proposal, says Republicans in Washington cut healthcare benefits to provide tax breaks for the rich, so California should tax the rich to pay for healthcare. This idea appears to resonate with a lot of folks at a Sunday farmers market in Kensington, a neighborhood near Berkeley, where a band plays for the shoppers.
DERIK HILLIARD: In order for our communities to thrive, there needs to be some leveling of the playing field.
FITZGERALD: Derik Hilliard is an attorney who says he supports the wealth tax.
HILLIARD: If a person has a billion dollars, you know what that is? That's a thousand million. And a one-time tax, a one-time levy in order to distribute some of this wealth for the good of the state, the people of California, is - I think it's a small ask in my opinion.
FITZGERALD: Twenty-three-year-old Julien Tremblay (ph) says he hasn't really heard about Prop 40 yet, but he says he's inclined to vote yes. He's moving back in with his mom to save money. He says the distribution of wealth in California is out of balance.
JULIEN TREMBLAY: You know, then you get, like, really high inflation rates. And, like, it just becomes more difficult to buy groceries, and it, like, contributes to, you know, like, increasing gas prices and just increasing cost of living, which is something that in the Bay Area we really struggle with.
FITZGERALD: Perhaps unsurprisingly, most people I talk to at the farmers market in this liberal area like the idea of taxing billionaires more. But not everyone agrees that Prop 40 is the best way to do it. Kellyn Foxman, a massage therapist, says the fact that Californians are even considering a wealth tax says something about the state's unequal resources.
KELLYN FOXMAN: I think it's acknowledging the myth of the middle class (laughter). Like, let's talk about that - how, like, we need to be having conversations about how we distribute wealth as a state. Yeah. We need to start taxing the people that make the most money, period.
FITZGERALD: But that being said, Foxman says she'd like to see it go towards other public services, in addition to healthcare. She's still thinking it over, but leaning towards no.
FOXMAN: In essence, it's exactly what we need. However, as written, I don't think it's as effective as we hope it will be.
FITZGERALD: Ads on TV, the web and in texts are flooding the state, and various stakeholders are split. Some labor unions are for it, and some are against it. Medical groups are divided. Sharon Silverman (ph) is waiting for her coffee order at one of the farmers market booths.
SHARON SILVERMAN: I mean, I believe in taxing billionaires, absolutely. They should pay tax just like everybody else. But we also can't tax them too much because then they'll just leave, and they'll take all their jobs and everything with them. So...
FITZGERALD: Some billionaires, like tech mogul Sergey Brin, have fueled the opposition campaign. Of course, a lot of Republicans are opposed to any higher taxes. But in a state where they're heavily outnumbered, the issue will be largely decided by Democrats, and the people they might listen to are divided. U.S. Senator Bernie Sanders of Vermont has toured the state in support of Prop 40. On the other side, the state's Democratic governor, Gavin Newsom, opposes it, saying he wants a national tax on the wealthy so they can't just move from state to state.
For NPR News, I'm Laura Fitzgerald in Berkeley.
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