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California’s Proposition 40 Wealth Tax Heads to 2026 Vote

8/17/2026

Summary

Story summary

California will vote in November 2026 on Proposition 40, a one-time 5% wealth tax for $1 billion+ residents.
Mark Cuban warned the tax could drive founders out of California, citing IRS data that Los Angeles County lost 17,496 filers and $1.9 billion.
Cuban said he will require non-residence for his startup investments.
Rep. Ro Khanna defended the measure, citing health-care funding, California Democratic Party support, and a nonrecourse loan using founders’ private-company stock as collateral.

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Story summary

California will vote in November 2026 on Proposition 40, a one-time 5% wealth tax for $1 billion+ residents.
Mark Cuban warned the tax could drive founders out of California, citing IRS data that Los Angeles County lost 17,496 filers and $1.9 billion.
Cuban said he will require non-residence for his startup investments.
Rep. Ro Khanna defended the measure, citing health-care funding, California Democratic Party support, and a nonrecourse loan using founders’ private-company stock as collateral.