Should Californians vote yes on The Billionaire Tax — Prop 40?
That was the question taken up in a live Anti-Debate this week at The Commons in San Francisco. Denizen steward Jenny Stefanotti moderated between tax law professor Annette Nellen and law professor Brian Galle — two leading experts on wealth taxation in California, who are on opposite sides of the issue.
Annette and Brian were both in gray blazers and socks (The Commons is a shoes-off kind of space 😉), and dove into the format with good faith. Whether folks in the audience already knew how they were going to vote, we all learned more about wealth taxes and tax reform more broadly.
Some points of synthesis emerged:
A wealth tax may be part of the solution. Both participants expressed openness to a wealth tax on very wealthy individuals, particularly an ongoing tax at a relatively low rate. They differed on its design and whether it should be implemented at the state or federal level. Note: this was the biggest breakthrough, where participants moved from debating whether to pass a one-time billionaire tax toward exploring the design of an ongoing wealth tax that both could potentially support.
Wealth taxation should complement, not replace, structural tax reform. Both agreed that the existing tax system allows enormous wealth to accumulate without being adequately taxed. Closing loopholes—particularly the stepped-up basis at death—and reforming income taxation remain important, whether or not Prop 40 passes.
Short-term relief and long-term reform need not be mutually exclusive. Brian emphasized the urgency of replacing lost healthcare funding, while Annette emphasized the need for sustainable solutions to ongoing budget problems. Both recognized the importance of addressing immediate needs alongside deeper fiscal reform, although they disagreed about whether Prop 40 is the right short-term intervention.
A better wealth tax would balance fairness, feasibility, and simplicity. Both explored a broader tax base, lower ongoing rates, and ways to address valuation and compliance challenges. They recognized trade-offs between taxing more wealthy households and keeping administration manageable.
Tax reform requires greater public understanding and political accountability. Both recognized that California’s tax system contains longstanding inequities and that meaningful reform requires lawmakers to address them. They differed on whether Prop 40 would accelerate that reform or reduce the pressure to pursue it.
Importantly, Annette and Brian didn’t reach agreement on Prop 40 itself — the synthesis was about the broader direction of needed tax reform. Watch the full video before the vote on November 3rd.
And more Anti-Debates are forthcoming! To stay tuned, subscribe here and on the Anti-Debate website.