A new poll indicates Californians are evenly divided on a proposed "savings tax" set for the November 2026 election, an idea previously championed by figures like Bernie Sanders and now by California Democrat politicians. Opponents, led by Carl DeMaio of Reform California, argue this is a socialist measure beyond existing taxes (income, sales, property, gas, car) that would tax assets like checking accounts, 401ks, and home equity at a flat percentage. While proponents frame it as a "wealth tax on billionaires," DeMaio warns it will inevitably expand to affect middle-class families. He highlights that previous attempts to tax the wealthy have resulted in broader taxation and that such taxes could cause high-income earners and businesses to leave the state, worsening California's budget deficit. Reform California is campaigning to defeat this initiative and is pushing two counter-measures: a constitutional amendment to permanently ban a savings tax and a measure to audit special taxes for accountability.
Public opinion shifts on the "billionaire's tax" when concerns about its impact on the middle class are raised.
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Introduction to the Proposed California Savings Tax [0:00]
A recent poll shows Californians are split on a new savings tax for the November 2026 election [0:00].
California Democrat politicians have promoted this idea for years [0:08].
Reform California is actively fighting against its implementation [0:18].
The proposed savings tax, advocated by California Democrats, is described as a socialist idea, akin to proposals from Bernie Sanders [0:42].
It would impose an additional tax on various assets beyond current taxes like income, sales, gas, car, and property taxes [1:03].
Assets subject to this tax include checking accounts, savings accounts, 401ks, stock portfolios, and home equity [1:41].
The proposed initial rates are 5-7%, which the speaker claims would only be a starting point and likely increase over time [1:57].
The speaker emphasizes that this tax is an "outrageous" government attempt to seize more money, despite already high existing taxes [2:32].
Critique of the Savings Tax and Government Spending [2:44]
The speaker argues that California already has the highest taxes and that the focus should be on curbing waste, fraud, abuse, and reckless government spending [2:44].
Balancing the budget and providing quality services could be achieved by tightening the belt and ensuring accountability in state and local government [2:58].
Democrats in Sacramento are criticized for their "spending addiction" and not allowing reforms [3:12].
Political Strategy and Misrepresentation of the Tax [3:44]
Democrat activist groups promoting the savings tax on the ballot are marketing it as a "wealth tax on billionaires" [3:36].
The speaker asserts it is a "savings tax," not a "wealth tax," and uses the example of "mileage tax" being called a "road user charge" to illustrate deceptive language [4:07].
A historical parallel is drawn to the income tax in the 1910s, which was initially promised to only affect the "uber rich" but eventually applied to everyone [4:31].
The speaker predicts the savings tax will ultimately apply to all Californians [4:58].
Carl DeMaio introduced ACA14, a constitutional amendment to ban any state or local savings tax, but it was killed by Democrats in the assembly [5:01].
This action, according to DeMaio, exposes their true intent to potentially expand the tax beyond billionaires [5:17].
A UC Berkeley Citron Center poll revealed initial opinions and how they shift with more information [8:00].
Awareness: 56% had heard something about the "billionaires tax," while 44% had heard nothing [8:12].
Initial Support: 50% of Californians initially supported the initiative (framed as a one-time 5% tax on billionaires), with 28% opposing and 23% undecided [8:34].
Concerns when informed:
56% were concerned it wouldn't be a one-time tax or would be expanded [9:26].
54% were concerned about people moving out of state [9:45].
63% were concerned about businesses fleeing the state [9:59].
59% were concerned about a loss of tax revenue from high-wealth individuals leaving [10:07].
67% were concerned that middle-class Californians would pay higher taxes to offset the difference [10:25].
68% trust state government "sometimes or never" [10:42].
Only 10% believe the tax benefits people as a whole, while 43% think it benefits "big interests" [11:02].
The speaker states that private polls show support for the tax "evaporates" after people are presented with these arguments, dropping to a low 30% [11:32].
Concerns about the proposed tax include it becoming non-one-time, people moving, businesses fleeing, loss of tax revenue, and the middle class bearing the burden.
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Reform California's Plan to Combat the Savings Tax [11:50]
Reform California has filed two competing ballot measures to counter the proposed savings tax [12:01].
Stop the Savings Tax Initiative: This measure would constitutionally prohibit any savings tax on any Californian, similar to the defeated ACA14 bill [12:06].
Audit Special Taxes Initiative: This measure aims to make it harder for politicians to impose "special taxes" and requires audits of existing special tax revenues to prevent diversion [12:26].
The organization urges individuals to visit their website, oppose taxhikes.org, to learn more, contribute, or volunteer to collect signatures for their petitions [12:44].
Volunteers are needed to collect signatures by April 15th (Tax Day) [13:21].
The speaker states that Reform California will lead a campaign to oppose the savings tax if it qualifies for the ballot, using the poll's arguments as a central message [14:14].
