The retroactivity provision in Proposition 40
Overview If it passes, Proposition 40 may be a temporary solution to Medi-Cal’s federal funding cuts.[1] But many potential constitutional challenges await it.[2] Retroactivity is a key feature of the critiques about this measure.[3] Proposition 40 arguably imposes a “whole new tax” because the tax obligation date occurs before the proposition’s hypothetical adoption date.[4] This article provides an analytical framework for the retroactivity question, arguing that Proposition 40 does not impose a “whole new tax” and is not unconstitutionally retroactive. This article should be considered with the points raised in “Proposition 40: A measured look at the billionaire tax” to...
