By admin 
Opponents of a proposed California billionaire tax launched their first statewide TV ad on Tuesday warning of dire consequences if voters pass Proposition 40.
Read more 5 things California state workers should know as legislative session nears end
Funded in part by billionaires who could be subject to the one-time, 5% tax, the ad touts three prominent politicians who’ve come out against the proposal: Gov. Gavin Newsom and the two men running to replace him, Democrat Xavier Becerra and Republican Steve Hilton. It also ticks off a number of other prominent critics, which include Planned Parenthood Affiliates of California, California School Boards Association and California Professional Firefighters.
The ad cites a Hoover Institute study that found the tax could cost the state $25 billion in lost revenue, “forcing deep cuts to hospitals, schools, and first responders.”
The ad kicks off an ad blitz that will continue through election day.
The group sponsoring the ad, No on Prop 40, is heavily funded by Building a Better California. Google co-founder Sergey Brin, whom Forbes ranks as the world’s 4th wealthiest person, has given $100 million into that group, including $20 million last month. Several other wealthy tech investors and entrepreneurs have also contributed to the group this month; entrepreneur Chris Larsen added $10 million, venture capitalist L. John Doerr contributed $7.5 million, entrepreneur John Hering gave nearly $1 million and venture capitalist Neil Mehta cut a check for $250,000.
The New York Times reported last month that Building a Better California has reserved $87 million for statewide TV commercials.
The ads’ claims of calamity are certain to be contested by the union backing the tax, SEIU United Healthworkers West. The union argues that the tax revenue is needed to save California’s healthcare system from steep cuts caused by H.R. 1, a Republican megabill passed last year that paired tax cuts with far-reaching changes to Medicaid.
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The two sides have cited radically different studies from academics on the economic impacts of the tax; the proposal’s backers say it will bring in $100 billion to state coffers with minimal longterm impacts.
The ad’s argument that the tax will force “deep cuts” to state services is also up for debate. To back up that claim, the ad cites . But that analysis is slightly more measured than the ad suggests. It says that if Prop. 40 passes, an unknown number of billionaires could leave the state, taking hundreds of millions of dollars or more in annual tax revenue with them.
“This would mean less money for the state’s general budget that supports education, healthcare, prisons and other services,” the report says.
A poll released earlier this month by UC Berkeley’s Institute of Governmental Studies found 48% of likely voters say they support Prop. 40 compared to 41% who say they plan to vote against it.
Read more 5 things California state workers should know as legislative session nears end