Billionaire Tax Explained: What You Need to Know About Prop. 40
Backers say the one-time levy could raise up to $100 billion, with most of the money reserved for healthcare and related services.
- In November's election, California voters will decide on Proposition 40, a one-time 5% tax on the net worth of the state's approximately 200 billionaires.
- Facing federal budget cuts from President Donald Trump's H.R. 1 that could cost $30 billion annually, backers estimate the tax could raise $100 billion, with 90% supporting healthcare programs like Medi-Cal.
- Opponents have raised more than $205 million to defeat the measure, including more than $138 million from Google co-founder Sergey Brin, as critics argue the tax could discourage innovation.
- Implementing the tax requires the Franchise Tax Board to value diverse assets including art and wine, while tax attorney Jon Feldhammer expects clients to mount lengthy legal challenges.
- Governor Gavin Newsom opposes the tax, stating the fight belongs at the federal level, while proponents view California as a "laboratory of democracy" pioneering equitable policy.
12 Articles
12 Articles
Prop. 40: Billionaire Tax splits party lines
The 2026 Billionaire Tax Act is dominating airwaves this election season as Californians get ready to vote on the nation’s first wealth tax. Also known as the Billionaire Tax, Proposition 40 creates a one-time 5% wealth tax on taxpayers with over $1 billion in assets. 90% of the revenue will be spent on public healthcare […]
Cal Matters
Billionaire tax explained: What you need to know about Prop. 40
Proposition 40 would levy a one-time tax on billionaires. Some say the initiative opens the door to tax flight and more aggressive taxation. Others say there’s no way to predict the outcome.
The Derrick
ItemliveCommentary: California’s billionaire tax is imperfect but a necessary step
In November’s election, California voters will decide on a one-time 5% tax on the net worth of the state’s roughly 250 billionaires — Proposition 40. The tax could raise an estimated $100 billion, with 90% set aside for healthcare and…
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