42

Why Thrive LA supports 42

Proposition 42 amends the California Constitution to prohibit any new state tax on the ownership of personal property, including retirement accounts, financial assets, business interests, digital assets, and intellectual property. It also bans retroactive state taxes, with a narrow exception for governor-declared emergencies. If both Proposition 42 and Proposition 40 (a wealth tax targeting billionaires) pass, whichever receives more votes takes effect. This is a straightforward constitutional guardrail against Sacramento's worst instincts. California already has the highest state income tax rate in the nation, the highest statewide sales tax rate, and some of the heaviest regulatory burdens on businesses and individuals. The fact that wealth taxes, unrealized-gains taxes, and retroactive levies are even on the table tells you everything you need to know about the Legislature's appetite for new revenue. Proposition 42 closes those doors before they open. Every tax on personal property is a tax on saving, investing, building a business, and planning for retirement. Wealth taxes punish the accumulation of capital that funds new housing, new companies, and new jobs. Retroactive taxes destroy the predictability that businesses and investors need to commit capital in California rather than move it to Nevada, Texas, or Florida. These are not abstract concerns. California has already lost corporate headquarters, high-net-worth residents, and billions in taxable income to states that offer greater certainty and lower burdens. Proposition 42 sends a clear signal: California will compete for capital, not confiscate it. The measure's coalition reflects its broad appeal. The Howard Jarvis Taxpayers Association, California Chamber of Commerce, California Small Business Association, California Black Chamber of Commerce, and California Taxpayers Association all support it. So do the Peace Officers Research Association of California and California Professional Firefighters, organizations that understand public safety funding depends on a thriving tax base, not punitive new levies that drive taxpayers out of the state. Tech leaders from Google, Stripe, DoorDash, and Affirm have backed the measure because they know that taxing wealth and innovation is the fastest way to lose both. Vote Yes on Proposition 42. It is the most important taxpayer protection on the 2026 ballot.