Sacramento, CA — A broad coalition of firefighters, blue-collar workers, labor unions, seniors, small businesses, veterans, taxpayer advocates, and financial advisors is urging Californians to vote Yes on Prop 42 to protect retirement and personal savings from new state taxes.

Californians already pay income taxes when they earn money. Prop 42 would prevent the state from taxing that same money again simply because it is sitting in a retirement or savings account. Prop 42 closes a loophole in the California Constitution that allows politicians and special interests to impose new taxes on retirement accounts, life savings, and other personal property – which they have repeatedly tried to exploit.

There have been five separate proposals to tax retirement accounts, including AB 2088 (2019), AB 310 and ACA 8 (2021–22), and AB 259 and ACA 3 (2023–24). With families already struggling with rising costs—and 85% of Californians saying the cost of living and taxes are making it harder to save for retirement—the coalition says Prop 42 is needed to protect Californians’ savings from future tax increases.

“California’s firefighters respond to our state’s toughest emergencies—from wildfires to rescues to medical emergencies. They should be able to count on the retirement benefits and savings they’ve worked so hard to earn through years of service. Voting Yes on Proposition 42 helps protect that retirement security,” said Darrell Roberts, President, California Professional Firefighters.

“The State Building Trades has consistently advocated for fair wages, strong benefits, and retirement security for working families. Our members have earned their retirement through a lifetime of hard work, and they should not have to worry that new taxes will threaten the financial stability they have built. This measure protects their retirement savings, as well as the savings of all Californians who have planned responsibly for the future,” said Chris Hannan, President, State Building and Construction Trades Council of California

“Day and night, California Highway Patrol officers are out on the road, keeping travelers safe and responding to emergencies. After spending their careers serving Californians, our members should be able to count on their retirement benefits and savings. Prop 42 makes sure their retirement is protected from new taxes,” said Jake Johnson, President, California Association of Highway Patrolmen

“Peace officers put their lives on the line every day to protect California’s communities. After a lifetime of service, they deserve certainty that the retirement benefits and savings they’ve worked hard to earn will be there for their families. Prop 42 protects that promise by preventing politicians from targeting retirement accounts and personal savings with new taxes.” said Brian R. Marvel, President, Peace Officers Research Association of California (PORAC)

“Veterans earned their benefits through years of service to our country. Disabled veterans often face higher medical expenses and limited income, making retirement and savings accounts critical to supporting them and their families. Prop 42 will safeguard the savings veterans depend on. Disabled American Veterans, Department of California strongly supports this initiative to protect veterans and all Californians from new taxes that threaten their financial security,” said Former Commander Armando Hernandez, Disabled American Veterans, Dept. of CA

Californians are on edge about their savings. Earlier this year, a statewide survey of California voters found significant anxiety about retirement security, with overwhelming majorities saying the state’s high cost of living and taxes are making it harder to save for retirement. Voters also express widespread concern regarding potential new and retroactive taxes on retirement savings and the impact such taxes would have on when – or if – they can retire in California. The survey presents an alarming picture of how retirement insecurity is affecting Californians across the state:

• Nearly seven in ten voters (69%) say it is harder to save for retirement today than it was five years ago.
• Two-thirds of voters (65%) lack confidence that they will be able to afford to retire comfortably in California, with one in six believing they will never retire.
• Nearly three-quarters (73%) of voters know someone who has had to delay retirement for financial reasons.
• Nearly three in five voters expect to need at least $1 million in savings to retire comfortably.

Prop 42 is currently supported by a diverse coalition of groups across California, including the State Building and Construction Trades Council of California, the California Professional Firefighters (CPF), the Peace Officers Research Association of California (PORAC), California Senior Alliance, the California Small Business Association, Disabled American Veterans, Department of California, the California Multicultural Business Alliance, and more.