Proposition 42

YES ON PROP. 42: PROTECT YOUR RETIREMENT AND LIFE SAVINGS FROM STATE TAXES

California is now the third most expensive state to retire in the nation. Every year, higher costs and taxes make it harder to save. An April 2026 survey found 73% of Californians know someone who has had to delay retirement for financial reasons.

CALIFORNIA CONSTITUTION CURRENTLY ALLOWS DOUBLE TAXATION

Yet, California’s Constitution currently allows the Legislature to tax the value of our personal property like retirement funds and savings accounts, even though residents already pay income tax on that money when they earn it. This means politicians can tax the same money twice: once when you earn it, and again when it is sitting in your retirement funds or savings accounts. That’s double taxation!

In the last few years alone, the Legislature and special interests have introduced six separate proposals that would tax retirement and savings accounts.

Taxes and cost of living are already too high in California—we need protections against taxes on our personal property and retirement savings.

PROP. 42 PROHIBITS TAXES ON RETIREMENT AND SAVINGS

Prop. 42 amends the state Constitution to protect Californians from this double taxation by special interests and politicians. Specifically, the measure:

• Prohibits new taxes on personal property, such as retirement funds, pensions and savings accounts; • Prohibits retroactive taxes; and • Prohibits all new taxes on retirement and savings this year and in the future.

PROP. 42 PROTECTS ALL FORMS OF RETIREMENT FUNDS AND SAVINGS FROM NEW TAXES

Roughly 80% of Californians report having some form of retirement fund or savings, including young workers just beginning to save; teachers, firefighters and police officers with pensions; and retirees who depend on their savings for financial security.

This measure protects all forms of personal property from new taxes, including 401ks, pensions, IRAs and personal savings.

“Prop. 42 protects Californians’ savings and retirement. Whether it’s a union member’s hard-earned pension or a small business owner’s IRA, new taxes on retirement shouldn’t stand between people and the security they’ve planned for.” —Chris Hannan, President, State Building and Construction Trades Council of California representing hundreds of thousands of union construction trades workers.

PROP. 42 PROHIBITS UNFAIR RETROACTIVE TAXES

The state should not be able to pass new taxes that apply retroactively to money that taxpayers earned in the past. Prop. 42 requires any new taxes to apply only after voters have approved them.

“It’s a question of fairness and common sense. People plan their retirement for years—they deserve stable, predictable rules that don’t change after years of saving and planning. Prop. 42 provides that certainty.” —Sean Morgan, licensed financial advisor

Prop. 42 is supported by a broad coalition of seniors, veterans, small business owners, blue-collar workers, retirees, including groups like the California Professional Firefighters and Disabled American Veterans, Dept. of California.

Californians are already struggling with high costs of living and high taxes. Many work their entire lives to achieve some measure of retirement security. It should be illegal for politicians and special interests to tax our retirement and savings.

You earned and saved it. Now we need to protect it. Please join us in voting Yes on 42. YesonProp42.org

Michael Hedges , President California Small Business Association Shelley Huff , Commander AMVETS, Department of California Jennifer Yoder , Board Member California Senior Alliance

THIS IS ANOTHER BILLIONAIRE-FUNDED TRICK

Don’t be fooled—Prop. 42 is not really about protecting your retirement savings from new taxes.

It’s a redundant, expensive trick to allow approximately 200 billionaires to keep avoiding paying their own taxes while YOU get stuck with the bill.

PROP. 42 WOULD CANCEL OUT THE BILLIONAIRE TAX

Prop. 42 is a billionaire-funded scheme designed specifically to undo the California Billionaire Tax, Prop. 40.

Prop. 42 was put on the ballot because billionaires don’t want to pay their fair share. They’d rather millions of working people lose healthcare than pay a modest, one-time tax on their extreme wealth.

WHO’S BEHIND THIS? SOME OF DONALD TRUMP’S DONORS

The billionaires behind this don’t care about protecting your retirement savings. They’re protecting themselves. They’ve been getting out of paying their own taxes for years through loopholes and tax breaks.

This sham initiative was created to trick voters like you into making a billionaire tax impossible to enforce. That’s why you must vote NO.

PROP. 40 WOULD ONLY TAX BILLIONAIRES’ $2 TRILLION IN WEALTH

The billionaires behind Prop. 42 have spread lies about the California Billionaire Tax (Prop. 40), trying to trick voters into thinking that their retirement and savings are at risk.

Don’t buy the fear-mongering. The California Billionaires Tax ONLY applies to billionaires. It’s about making billionaires finally pay their fair share so we’re not stuck with shuttered hospitals and skyrocketing healthcare costs.

Vote NO on Prop. 42.