Bernie Sanders opposes California measures on spending oversight and retirement savings as billionaire tax fight intensifies

U.S. Sen. Bernie Sanders of Vermont is taking on two California ballot measures, urging voters to reject Propositions 41 and 42 as a battle over a proposed billionaire wealth tax intensifies ahead of the November election.

Sanders’ name appears in the opposition sections of the California Secretary of State’s official voter information guides for both propositions. He is not a candidate for California office, but his inclusion as an opponent makes him a prominent out-of-state political figure intervening in a state ballot campaign.

The dispute centers on Proposition 40, a proposed one-time 5% tax on the wealth of certain billionaires. Supporters say the tax could help protect health care funding amid federal spending cuts, while opponents of the other measures argue that Propositions 41 and 42 could undermine the wealth tax. Sanders and labor groups supporting Proposition 40 want voters to reject both measures.

Why Proposition 41 supporters say California needs more accountability

Proposition 41 is billed as a government transparency and accountability measure. It would require the California State Auditor to review programs funded by proposed new special taxes before those initiatives reach voters, followed by recurring audits of programs funded by qualifying taxes approved by voters or the Legislature.

Supporters argue that taxpayers deserve evidence that government spending is producing results. California’s state government will spend more than $350 billion this year, according to the official argument in favor of Proposition 41, which also cites a 79% increase in state spending since 2019.

The measure’s backers point to spending on homelessness programs as an example of where they believe the public has not seen enough progress to justify the money invested. They argue that independent public audits could identify ineffective programs, improve transparency and help direct resources toward initiatives that work.

The campaign, known as Yes on 41 — Californians for Transparency and Accountability, describes its coalition as including small businesses, taxpayers, good-government advocates, accountants and auditing experts. Its supporters include the California Society of Certified Public Accountants, the CalAsian Chamber of Commerce and the California Taxpayers Association.

Proposition 41 would also change California’s state spending rules

Beyond audits, Proposition 41 would restrict the state’s ability to exclude revenue from new special taxes from California’s existing voter-approved state spending limit. It would also nullify certain state taxes enacted after Jan. 1, 2026, if they conflict with the measure.

For supporters, the spending-limit provision is an important part of the proposal. They argue that new taxes earmarked for specific programs should not automatically escape fiscal constraints that apply to other state spending.

Their position is that voters should not have to choose between funding public services and demanding accountability. A program may have a worthy goal, they argue, but that does not eliminate the need to measure its results or ensure that revenue is handled transparently.

The measure’s opponents, however, say these provisions go beyond government oversight. They contend that Proposition 41 could conflict with Proposition 40, which would exempt its revenue from the state spending limit. Under Proposition 41’s conflicting-measures provision, Proposition 40 could be invalidated if the former receives more affirmative votes.

That possibility has turned a proposal promoted as a fiscal accountability measure into a central part of the fight over the billionaire tax.

The California Secretary of State’s Proposition 41 voter information guide says

Pro: Californians deserve better results for our taxes. Billions have flowed into programs like homelessness, with too little to show for it. Prop. 41 requires the independent State Auditor to conduct PUBLIC AUDITS of programs funded by new taxes—so we get more transparency, more accountability and better outcomes for taxpayers.

Con: Prop. 41 isn’t really about audits—it’s a billionaire-funded trick designed to undo the California Billionaire Tax. Billionaires would rather millions of Californians lose healthcare than pay a modest tax on their extreme wealth. Don’t fall for the billionaires’ lies. Vote NO on 41.

Proposition 42 supporters say Californians deserve to protect their retirement savings

Proposition 42 makes a different argument: Californians should be protected from new state taxes on personal property, including financial assets, retirement funds and savings, as well as certain retroactive taxes.

Its supporters say residents already face high living costs and should not have to worry that lawmakers will introduce new taxes on assets they have spent years accumulating. They frame the measure as a matter of fairness, predictability and retirement security.

The official argument in favor of Proposition 42 says California is the third-most-expensive state in which to retire. It also cites an April 2026 survey finding that 73% of Californians know someone who has delayed retirement for financial reasons.

The campaign argues that people who have saved for retirement should be able to plan around stable rules. It says the measure would protect a broad range of assets, including 401(k) accounts, individual retirement accounts, pensions and personal savings, from new state taxes on ownership.

Supporters include the California Professional Firefighters, the State Building and Construction Trades Council of California, AMVETS Department of California, seniors, veterans, small business and taxpayers.

Proposition 42 raises concerns about retroactive taxation

Another central argument for Proposition 42 is that taxpayers should not face new tax rules applied retroactively to past activities.

Supporters say people make financial decisions based on the laws in place at the time. Someone saving for retirement, investing in a business or building a portfolio may make long-term plans based on an expectation that the rules will remain reasonably predictable.

The measure would limit the circumstances in which the state could impose retroactive taxes, including through legislation or ballot measures. Its supporters argue that new taxes should generally apply prospectively, giving taxpayers notice of the rules before they make financial decisions.

The campaign says the protection would benefit more than wealthy investors. It points to teachers, firefighters, police officers, veterans, small-business owners, younger workers and retirees who rely on savings or pensions for financial security.

Chris Hannan, president of the State Building and Construction Trades Council of California, makes the case in the official voter guide by arguing that a union member’s pension or a small-business owner’s IRA should not be threatened by new taxes on retirement savings.

From the supporters’ perspective, Proposition 42 is intended to establish a constitutional safeguard against future tax changes that could disrupt financial plans.

Proposition 42 would restrict future taxes on financial assets

California currently taxes income earned from financial assets, but it does not generally tax the mere ownership of stocks and investment accounts. Proposition 42 would prohibit the state from establishing new taxes on the ownership of financial assets and other personal property.

The distinction matters. Supporters argue that the state should not be allowed to introduce new taxes on savings and retirement assets after people have already paid income taxes on the money used to build those accounts.

The measure would also restrict the state’s future revenue options. The Legislative Analyst’s Office says Proposition 42 could make it somewhat harder for California to raise taxes and could reduce future tax revenue, although the timing and amount of any reduction are unclear.

Supporters see that restriction as a necessary safeguard for personal property. Opponents argue it could limit the state’s ability to respond to future funding needs, including health care costs.

The measure also raises a direct conflict with Proposition 40, which proposes a one-time tax on the wealth of certain billionaires. Because the wealth tax would apply to financial assets and would reach back to Jan. 1, 2026, the two measures could conflict. The Legislative Analyst’s Office says that if Proposition 42 receives more affirmative votes than Proposition 40, the billionaire tax could be stopped from becoming law, even if Proposition 40 wins a majority of votes.

The California Secretary of State’s Proposition 42 voter information guide says

Pro: California’s Constitution currently allows the Legislature to tax retirement and savings—even though you already paid taxes on that money when you earned it! Prop. 42 protects Californians from this double taxation, by prohibiting new and retroactive taxes on personal property, including retirement and savings. You earned it. Prop. 42 protects it.

Con: This is just another billionaire-funded trick. Prop. 42 isn’t really about protecting your retirement savings—its only real purpose is to undo the California Billionaire Tax. Billionaires would rather millions of Californians lose healthcare than pay a modest tax on their extreme wealth. Vote NO on 42.

Sanders and labor groups argue the measures could undermine the billionaire tax

Sanders’ opposition to Propositions 41 and 42 reflects the position of supporters of Proposition 40, who argue that the two measures could block the proposed billionaire tax.

The Proposition 40 campaign says the tax would help offset health care funding pressures and require billionaires to contribute toward essential public services. Opponents of Propositions 41 and 42 argue that the measures are not simply about audits or protecting retirement savings, but could prevent the state from collecting the proposed wealth tax.

Bernie Sanders and the SEIU-United Healthcare Workers West are the only organizations listed as opposing both measures. The union has been a leading force behind the billionaire-tax campaign, arguing that California needs additional revenue to protect health care services.

The two sides offer sharply different interpretations of the proposals. Supporters of Propositions 41 and 42 say they are establishing fiscal safeguards and protecting ordinary Californians’ assets. Sanders and other opponents argue that the measures could make it harder to fund health care by invalidating a tax aimed at a small number of extremely wealthy residents.

The legal question is not merely whether voters approve the measures individually. It is also whether competing provisions would conflict and which measure would prevail under the ballot language and applicable law.

Why Sanders’ involvement is unusual

Sanders is a senator from Vermont, not a California elected official or candidate. His name appears in the official voter guide because he is listed among the opponents of Propositions 41 and 42, not because he is running for office in the state.

That distinction makes his role notable. A nationally prominent senator is taking a public position on California ballot measures whose effects could extend to the state’s tax policy and health care funding. His involvement also illustrates how the debate over taxing extreme wealth has become a national issue within the Democratic Party.

The fight does not divide neatly along party lines. Some labor groups and progressive politicians support the billionaire tax, while other prominent Democrats and business groups oppose it. Supporters of Propositions 41 and 42 argue that their measures should be judged on their own merits: whether state spending is accountable and whether taxpayers can protect their savings from new or retroactive taxes.

Sanders and other opponents argue that voters should look at the measures’ potential interaction with Proposition 40 before deciding. In their view, the practical consequences for health care funding are too significant to treat the propositions as unrelated policy changes.

 

California voters face a choice over taxes, savings and health care funding

California voters will decide the fate of Propositions 40, 41 and 42 in the Nov. 3, 2026, general election. The outcome could shape both the state’s ability to raise revenue and the limits placed on future taxation.

Supporters of Proposition 41 say independent audits and stronger spending rules are needed to ensure taxpayers receive better results from government programs. Supporters of Proposition 42 say Californians deserve protection from new taxes on retirement savings and from tax rules applied retroactively.

Opponents of both measures, including Sanders, warn that their provisions could undermine Proposition 40, which seeks to impose a one-time tax on the wealth of certain billionaires to help fund health care and other services.

The competing arguments reflect a broader question for California: how to balance fiscal accountability and protections for personal savings with the state’s ability to raise money for public services. Voters will have to weigh those priorities while considering not only what each proposition promises, but also how the measures could interact if approved.

California’s billionaire tax fight could shape the 2028 presidential race

The fight over Propositions 40, 41 and 42 could also offer an early preview of the Democratic Party’s battle over its future direction ahead of the 2028 presidential election.

Progressive activists see California as a potential testing ground for policies that could become national campaign issues, including taxing extreme wealth to protect health care and other public services. Sanders’ intervention puts a nationally recognized progressive behind that effort, while Gov. Gavin Newsom faces a different political calculation as he is widely viewed as a potential 2028 presidential contender.

Newsom has expressed reservations about California’s proposed billionaire wealth tax, warning about the risks of driving wealthy residents and their tax revenue out of the state. That position could help him appeal to business interests, moderates and voters beyond California, but it also risks putting him at odds with progressives who want Democrats to embrace more aggressive taxes on the ultrawealthy. The ballot fight therefore has implications beyond Sacramento: it could help define whether Democrats heading into 2028 prioritize a more confrontational economic populism or a centrist message aimed at building a broader national coalition.

 

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