California’s Proposition 42 would bar new state taxes on retirement accounts, savings and other personal assets if voters approve it in November.
The measure would remove the Legislature’s authority to impose such taxes and prohibit retroactive taxes on money saved in the past. State lawmakers introduced five proposals to tax personal savings and retirement funds since 2019, but none passed.
A chamber representing small-business owners supports the measure, arguing that its members often save for retirement only after paying employees, suppliers and rent. The chamber says a tax on those savings could charge them again on money already taxed as business income. Critics, it says, argue the measure would protect wealthy people; the chamber disputes that description of its members.
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