Katie Porter Criticizes California Billionaire Tax as Harmful to Healthcare System
The former congresswoman argues Proposition 40 would funnel funds to private insurers rather than patients.
Failed California gubernatorial candidate Katie Porter has voiced strong opposition to Proposition 40, a proposed one-time 5% tax on the wealth of the state's billionaires. Porter, who had previously suggested she might leave politics after her unsuccessful gubernatorial bid, detailed her criticisms in a recent op-ed and podcast appearances.
Porter described Proposition 40, which will appear on the November ballot, as an "ass backwards" measure that fails to address the root causes of rising healthcare costs. She argued that the tax, intended by supporters to mitigate healthcare cuts, would instead direct billions of dollars to private health insurance companies and the corporations that control the healthcare system, rather than directly benefiting patients.
"It does nothing to reform our healthcare system and would send billions in tax dollars to private health insurance companies and corporations that dominate our healthcare system," Porter stated in her op-ed. She expressed concern that the measure acts as a "band-aid" that offers no guarantees that the revenue would reach those in need.
Several organizations have also opposed Proposition 40, including the California Medical Association, the California Primary Care Association, and Planned Parenthood Affiliates of California, according to Porter. She echoed concerns that the proposition could destabilize the state's economy if wealthy residents leave California due to the tax, potentially impacting the state's general fund revenue which supports essential services like schools, public safety, and healthcare.
During the California gubernatorial primary debates, Porter had previously expressed reservations about Proposition 40, labeling it "simply not good tax policy." At that time, she suggested the measure was insufficient because it was a one-time tax and did not address the ongoing revenue needs of the state. She also felt that too much of the potential revenue was earmarked for healthcare, potentially neglecting other crucial programs.
Despite her criticisms of the current proposition, Porter maintains her broader stance that "billionaires should pay their fair share."
Porter's recent public opposition to Proposition 40 comes as California Governor Gavin Newsom appointed her to the California Community Colleges Board of Governors. This position, pending state Senate confirmation, offers a daily stipend for official duties. Newsom himself has been a notable opponent of Proposition 40, reportedly working to rally support against the tax from left-leaning organizations.
Porter finished fifth in the June gubernatorial primary, securing 4.4% of the vote. This followed her third-place finish in the 2024 primary for the U.S. Senate seat that was ultimately won by Adam Schiff.
Porter's career has been marked by several public controversies. Her ex-husband alleged in divorce filings that she once threw mashed potatoes on his head, a claim Porter disputed. More recently, leaked footage from a taped interview showed Porter instructing a staffer to leave her camera frame during a virtual call with strong language. Porter later apologized for the incident, acknowledging that she could have handled tense situations better.