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For the past three months, Democrat activists have collected signatures on a controversial initiative to create a new “Savings Tax” in California that would allow government to take a percentage of an individual’s savings, stocks, retirement and home equity each year.
While Democrats claim they only want to apply the tax to “billionaires,” Reform California Chairman and State Assemblymember Carl DeMaio are calling BS on those claims.
This week DeMaio exposed the truth when he took to the Assembly floor and demanded an immediate vote on a constitutional amendment that would have permanently blocked politicians from imposing a new “Savings Tax” on middle-class Californians.
Democrats voted NO—refusing to protect middle-class families’ savings, home equity, and retirement accounts.
“They had a chance to protect working families, and they chose not to,” DeMaio said. “That vote tells you everything you need to know.”
The proposed Savings Tax—now being marketed by Democrats and far-left activists as a “Wealth Tax”—would confiscate a set percentage of an individual’s assets, including:
While Democrats claim the tax would only apply to billionaires, ACA-14 was designed to prevent politicians from ever expanding the tax to hit the middle class. Democrats rejected that safeguard.
ACA-14 would have amended the California Constitution to provide iron-clad protections for taxpayers by:
The amendment was structured to appear on the same ballot as the Billionaires Tax and would only take effect after voters decided on that proposal—preserving voter choice while guaranteeing the middle class could never be targeted.
California already has the highest income tax in the nation, some of the highest property taxes, the highest gas tax, and some of the highest sales and car taxes in America.
Adding a Savings Tax would devastate families who have spent decades building modest wealth through homeownership, retirement savings, and careful budgeting.
“This isn’t about taxing billionaires,” DeMaio said. “It’s about giving politicians the power to go after everyone’s savings when their spending spirals out of control.”
Despite publicly opposing a Savings Tax on billionaires, Democrats refused to lock in protections for middle-class taxpayers—leaving the door wide open for future expansions of the tax.
“Democrats are trying to have it both ways,” DeMaio said. “They say one thing to voters, then vote another way when it counts.”
Reform California is urging voters to take note of the vote and hold lawmakers accountable for refusing to protect Californians from yet another reckless tax scheme.
“We don’t need new taxes on our savings,” DeMaio said. “We need accountability, fiscal discipline, and politicians who stop treating taxpayers like an ATM.”
