California Republican lawmakers have voiced concerns about a controversial proposal to introduce a “Savings Tax” in the state. According to Assemblyman Carl DeMaio of the 75th District, Democratic activists have been collecting signatures over the past three months to push forward this contentious idea, which they tout as a “Wealth Tax.” This proposed tax would allow the government to levy a certain percentage of taxes annually on individuals’ savings and checking accounts, stock investment portfolios, retirement accounts, and home equity.
DeMaio, speaking on behalf of the non-profit organization “Reform California,” outlined the potential implications of the proposed “Savings Tax.” He criticized Democratic lawmakers and far-left activists for promoting a measure that would target the hard-earned savings, home values, and retirement funds of middle-class families in California. Despite his efforts to prevent the imposition of this tax by proposing a vote on Constitutional Amendment ACA14 on February 12th, Democratic lawmakers, who hold a significant majority in the California Assembly, voted against his proposal.
The Assembly in California consists of 60 Democratic members and only 20 Republican members, typically voting along party lines. DeMaio accused Democratic lawmakers of prioritizing the protection of billionaires from taxation while ignoring the adverse impact the Savings Tax would have on middle-class taxpayers. In a post-meeting video, he expressed his disbelief at the politicians’ disregard for the financial well-being of ordinary Californians.
Highlighting California’s existing high income tax, property tax, gas tax, sales tax, and vehicle tax rates, DeMaio emphasized that the introduction of a Savings Tax would inflict a devastating blow on families who have diligently saved for homeownership, retirement, and financial stability over the years. He condemned the proposal as a power grab that would allow politicians to dip into individuals’ savings whenever government spending spirals out of control, thus undermining fiscal responsibility and accountability.
ACA14, officially titled “Taxes and Fees: Voter Thresholds,” was initially introduced by DeMaio in April 2025 to prevent tax hikes on the middle class. The bill mandates that any proposal to impose or increase taxes, fees, or charges must be clearly labeled as a “Tax Increase” or “Fee Increase” and specify the type, amount, and duration of the tax or fee. It also requires approval from a majority of voters for general taxes and two-thirds of voters for taxes or fees designated for specific purposes.
Moreover, local governments seeking to raise taxes or fees must also obtain approval from at least two-thirds of local voters. The bill encompasses a wide range of provisions, including taxing savings and investments, imposing an “Exit Tax” on residents leaving California or the United States, increasing taxes on vehicles or vehicle components, and raising taxes on vehicle fuel, among others.
The “Reform California” organization, led by DeMaio, urged voters to pay attention to these proposals and hold politicians accountable for prioritizing tax hikes over the well-being of California residents. They emphasized the need for accountability, fiscal discipline, and a commitment to safeguarding taxpayers’ interests, rather than treating them as a bottomless source of revenue.