California Voters Face Billionaire Wealth Tax in November Ballot

California voters will decide in November whether to impose a one-time 5% tax on the net worth of the state's billionaire residents. The measure, known as Proposition 40, targets more than 200 individuals, including Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas. If passed, the tax would apply retroactively to anyone with a net worth of at least $1 billion who resided in California as of January 1, 2026.

Proponents argue the levy will raise $100 billion to offset federal funding cuts to the state’s healthcare system resulting from recent tax and spending legislation. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the measure as a short-term solution to prevent a collapse of the healthcare system. She stated, "If we do nothing, we're going to see a collapse of our healthcare system, while we figure out a longer-term solution to fund our healthcare."

Francesco Trebbi, a public policy professor at the University of California, Berkeley, identified the proposal as likely the first billionaire tax targeting the extreme upper percentile of the wealth distribution. He noted that California holds the largest state economy in the United States and the fourth largest globally, yet it also contains the nation's largest share of homeless people and one of its widest wealth gaps.

Governor Gavin Newsom, whose term is ending, opposes the measure, warning it could drive wealthy residents and their income tax revenue out of the state. Google cofounder Sergey Brin has contributed more than $100 million to a political organization funding ballot measures that could block the tax. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found that 45% of likely voters support the measure, 42% oppose it, and 13% remain undecided.

Several billionaires have already relocated or consider leaving. At least six residents, including Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber CEO Travis Kalanick, and Hankey Group founder Don Hankey, have reportedly moved. Hankey told Forbes he moved to Nevada because the proposal made him feel unwelcome despite the jobs his companies created. Meta CEO Mark Zuckerberg informed the company's board last month that he is considering moving his primary residence out of state. Meta agreed to a new stock deal to give him additional shares to cover potential losses, which could reach $12.5 billion.

Supporters among the wealthy include Nvidia chief Jensen Huang, who told CBS that he does not mind paying taxes and that higher earners should pay more. Senator Bernie Sanders, speaking at a Los Angeles rally, said billionaires believe they have a God-given right to rule and predicted voters would deliver a powerful lesson on November 3. DoorDash cofounder Andy Fang criticized the measure as stupid.

Washington state voters are also weighing a 9.9% income tax on earnings over $1 million annually. Kristian Niemietz of the Institute of Economic Affairs noted that only Spain, Norway, and Switzerland currently maintain wealth taxes, describing such levies as more trouble than they are worth. Data from the third quarter of 2025 shows the top 1% of US households hold nearly 32% of wealth, while 72% of Californians believe the gap between rich and poor is widening.