California Voters to Decide on Billionaire Wealth Tax

California voters will decide on Proposition 40 during the November 3, 2026, General Election. The labor union-sponsored initiative would impose a one-time state tax of up to 5% on residents with assets exceeding $1 billion. Led by Dave Regan and the SEIU-UHW healthcare-workers union, supporters argue the tax is a moral necessity to cover an estimated $100 billion shortfall in federal healthcare funding caused by Trump administration cuts.

Opposition is led by the California Business Roundtable and billionaires including Google co-founder Sergey Brin, who has spent over $100 million to defeat the measure. To counter the initiative, the PAC Building a Better California is backing Propositions 41 and 42, which include conflict clauses that would void Proposition 40 if they receive a higher vote total. Opponents, including Governor Gavin Newsom and former representative Katie Porter, argue the tax is poorly designed and could drive wealthy residents out of the state.

While the California Democratic Party supports the measure to offset federal cuts, other Democratic leaders and gubernatorial candidates oppose it. Separately, voters will consider Proposition 3, which seeks to make the state's progressive income tax brackets permanent beyond their 2031 expiration. Recent polling indicates a tight race, with 52% of decided voters supporting the tax and 48% opposing it.