California Voters Weigh 5% Billionaire Tax as $379.5 Million Fight Engulfs Proposition 40
Updated
Updated · The Guardian · Oct 30
California Voters Weigh 5% Billionaire Tax as $379.5 Million Fight Engulfs Proposition 40
3 articles · Updated · The Guardian · Oct 30
Summary
California voters will decide within days whether Proposition 40 imposes a one-time 5% tax on billionaires living in the state on Jan. 1, 2026 to fund healthcare, plus some education and food assistance.
The measure emerged after Trump's healthcare cuts were projected to strip coverage from more than 3.4 million Californians when they take effect in January, including millions of children.
Opponents led by tech billionaires have poured more than $379.5 million into campaigns against Prop 40 and for rival Propositions 41 and 42, with Sergey Brin alone contributing at least $102 million.
The fight has split Democrats and unions, with Gavin Newsom, Xavier Becerra and Katie Porter opposing Prop 40 while the California Democratic Party and the state AFL-CIO endorsed it.
Polls show the measure's summer seven-point lead has narrowed to one point, underscoring how a California ballot fight has become a national test of taxing extreme wealth.