California Voters Decide Proposition 40 Wealth Tax on Billionaires

General12 sourcesNov 3, 2026

SplitFactual rigor 65/100

The Story

California voters head to the polls to decide Proposition 40, a ballot measure that would impose a one-time five percent tax on the net worth of residents exceeding one billion dollars.

The proposal, backed by the SEIU United Healthcare Workers West labor union, aims to raise revenue to backfill federal funding cuts to healthcare, with supporters estimating a yield of one hundred billion dollars over five years from roughly two hundred billionaires. The measure has sparked one of the most expensive ballot fights in history, with opponents raising over three hundred seventy-nine million dollars, heavily funded by tech moguls including Google co-founder Sergey Brin, who contributed over one hundred million dollars.

Prominent tech executives have responded differently to the threat, with Google co-founders Sergey Brin and Larry Page starting to cut ties with the state, Meta CEO Mark Zuckerberg creating a new class of shares for liquidity, and Nvidia CEO Jensen Huang stating he is fine with whatever taxes apply. Democratic Governor Gavin Newsom has opposed the measure, warning it will drive the wealthy away, while Vermont Senator Bernie Sanders has championed it as a step against wealth inequality.

The billionaire tax also faces potential legal hurdles and competing poison pill ballot measures, including Proposition 42, which seeks a permanent ban on statewide property taxes.

What they agree on

Proposition 40 appears on the California ballot to decide a one-time 5% tax on net worth exceeding $1 billion.
Opponents of the measure raised hundreds of millions of dollars, outspending supporters in campaign advertising.
Prominent technology executives, including Google co-founders Sergey Brin and Larry Page, altered their residency or financial structures in response to the proposed tax.
Supporters argue the revenue will backfill healthcare funding cuts, while opponents warn of long-term tax base reduction and billionaire relocations.

Where they split

Common Dreams and other independent outlets reported that opponents outspent proponents by a factor of 250 to 1, citing filings showing over $379 million raised against $35 million for proponents, while other sources cited narrower fundraising figures through late October.
Economists and analysts cited by various sources offered conflicting revenue projections, with progressive proponents estimating $100 billion and other economic analyses suggesting net losses due to permanent income tax departures.