Politics · United States · 2 hrs ago
California voters to decide on one-time 5% tax on billionaires
California voters will decide on Proposition 40 in the November 3 election.
It would impose a one-time 5% tax on the wealth of the state's roughly 200 to 250 billionaires.
The proposal was backed by the SEIU-UHW union and economist Gabriel Zucman, and its supporters say federal health care cuts threaten coverage for 3.5 million Californians.
Supporters estimate the tax could raise $100 billion over five years, with 90% set aside for health care.
Billionaires and other opponents say the tax could drive wealthy people and businesses out of California; two other ballot measures could also block Proposition 40 if either gets more votes.
The measure would tax total wealth, including assets such as stocks that are generally not taxed until they are sold.
Voters' decision will determine whether the tax takes effect and whether the state can use the money to help cover health care costs.
California voters are due to decide on November 3 whether to impose a one-time 5% tax on the wealth of the state’s billionaires.
Proposition 40 is expected to raise $100 billion, with supporters saying the money would help protect health coverage threatened by federal cuts.
The measure is backed by the SEIU-United Healthcare Workers West union and economist Gabriel Zucman.
Opponents, including Governor Gavin Newsom and former Congresswoman Katie Porter, argue the tax could drive wealthy residents away and harm California’s tax base.
The sources differ on the number of billionaires affected, describing them as roughly 200 or roughly 250.
- Who
- California voters will decide; the measure would apply to the state’s billionaires.
- What
- Proposition 40 would impose a one-time 5% tax on billionaires’ wealth.
- When
- The vote is scheduled for November 3, 2026.
- Where
- California.
- Why
- Supporters say the tax would raise money to address health coverage threatened by federal cuts.
Proposition 40 supporters
Proposition 40 opponents
Purpose
Proposition 40 supporters
Supporters say the measure would raise $100 billion to help protect health coverage for 3.5 million people.
Proposition 40 opponents
Opponents say the tax is flawed and could cause billionaires to leave, weakening the state’s tax base.
Tax policy
Proposition 40 supporters
Dave Regan says a five-year solution is better than no solution.
Proposition 40 opponents
Katie Porter says the tax does not make the ultra-wealthy pay more in the right way and could have lasting consequences.
President Donald Trump signed the One Big Beautiful Bill, which the sources say includes cuts to federal Medicaid funding.
Gabriel Zucman arrived in San Francisco after traveling from Budapest and began campaigning for Proposition 40.
California voters are scheduled to vote on Proposition 40.
- Tax rate
- One-time 5%
- Expected revenue
- $100 billion
- People whose coverage supporters say is threatened
- 3.5 million Californians
- Required petition signatures
- 875,000
- Vote date
- November 3, 2026
4 sources
We must tax the wealth of billionaires, not just income. California can lead the way | Ro Khanna
California's proposed billionaire tax: How does it add up?
On the campaign trail with Gabriel Zucman, the economist who wants to tax California's billionaires
What people are saying
We are facing an emergency.
What we're trying to do is restore $100 billion worth of health care cuts
But this tax doesn't do that correctly, causing these people to pick up and to leave.
I'm fired up! I can't wait to dive into the fight.