If California undid its ‘original sin’ and matched Texas on taxing property, it would raise more revenue than the billionaire tax, economists say

California voters are set to decide on Proposition 40, a controversial billionaire wealth tax proposal. But economists say the measure is being considered alongside a much older issue: how the state taxes property.

A tax debate with deeper roots

The property-tax question reaches back nearly 50 years and remains a significant part of the debate surrounding Proposition 40. According to economists cited in the discussion, if California reversed its historic approach and taxed property more like Texas, the state could raise more revenue than it would through the proposed billionaire tax.

That comparison places the ballot measure in a broader fiscal context. Rather than focusing only on the tax burden of billionaires, the debate also raises questions about the revenue potential of property taxation across California.

What is at stake

Proposition 40 is expected to give voters a choice over whether to adopt the billionaire wealth tax. The property-tax comparison does not remove the measure from the ballot, but it highlights another possible route for raising state revenue.

The available information does not specify the design of the property-tax alternative or provide revenue estimates for either approach. It does, however, show that California’s current tax debate is connected to a longstanding policy dispute as voters prepare to decide on Proposition 40.