We all want to help those who want to stop smoking, but

Prop 56 is not what it appears to be.

Prop 56 is a $1.4 billion “tax hike grab” by insurance companies and other wealthy special interests to dramatically increase their profits by shortchanging schools and ignoring other pressing problems.

money
Prop 56 Allocates

Just 13%

Of new tobacco tax money to treat smokers or stop kids from starting

If we are going to tax smokers another $1.4 billion per year, more should be dedicated to treating them and keeping kids from starting.

Instead, most of the $1.4 billion in new taxes goes to health insurance companies and other wealthy special interests, instead of where it is needed.

Prop 56 spending formula, tobacco tax revenues

graph

Source: Prop 56 spending formula for net funds after backfill and earmarked allocations
Note: Up to $147 million can be used for administrative costs – nearly 10% of the total revenues raised by the initiative.

Not one penny of the new tax money from
Prop 56 will go to improving our kids’ schools.

Prop 56

Cheats Schools

Out of at least

$600 Million

Per year
California’s Constitution (through Proposition 98), requires that schools get at least 43% of any new tax increase. Prop 56 was purposely written to undermine our Constitution’s minimum school funding guarantee, allowing special interests to deceptively divert at least $600 million a year from schools to health insurance companies and other wealthy special interests.
Prop 56

Fattens

Insurance Company

Profits

Health insurance companies and wealthy special interests wrote Prop 56 and are spending millions to pass it so that they can get paid as much as $1 billion more for treating the very same Medi-Cal patients they already treat today. They are not required to accept more Medi-Cal patients to get this money.
Prop 56

Doesn't Solve Problems

Facing California Families
We have many pressing problems in California, like fully funding our schools, repairing roads, solving the drought and fighting violent crime. If we are going to raise taxes, we should be spending this new tax revenue on these problems.
Prop 56 spends up to

$147 Million

Per Year

On Overhead and Bureaucracy
Up to $147 million can be used each year for administrative costs – nearly 10% of the total revenues raised by the initiative, with virtually no accountability to taxpayers. This could lead to massive waste, fraud, and abuse. In fact, Prop. 56 spends nearly as much money on administration and overhead as it does on tobacco prevention efforts!
No

to wealthy special interests using our initiative process just to increase their profits.

No

to cheating schools out of at least $600 million per year.

No

to millions of new tax dollars going to overhead and administration with the potential for waste, fraud, and abuse.

No

to rewarding health insurance companies and wealthy special interests with even bigger profits, instead of solving real problems like roads, violent crime and fully funding our schools.

Please join us in voting no on Prop 56