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California Puts Proposition 40 Billionaire Tax on 2026 Ballot

By Drooid · Sep 20, 2026, 3:13 PM UTC · How we work

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Billionaire Opposition Funding

California placed Proposition 40, a one-time 5 % tax on assets of residents with net worth over $1 billion, on the November 3, 2026 ballot.
Supporters argue the tax would fund Medi-Cal and shield vulnerable Californians from federal Medicaid cuts.
Proponents estimate it would raise about $100 billion, directing 90 % to Medi-Cal and 10 % to food aid and education.
Billionaires Sergey Brin, Larry Page and Mark Zuckerberg have donated over $127 million to campaigns opposing the tax.

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Entrepreneur Fears Exodus

California placed Proposition 40, a one-time 5 % tax on the net worth of residents with assets over $1 billion, on the November 3, 2026 ballot.
Entrepreneur Eric Schiffer warned the tax would create a ‘giant sucking sound,’ prompting billionaires and founders to flee California.
The Legislative Analyst’s Office said departures would cut state income-tax revenue by under $1 billion annually.
GOP gubernatorial candidate Steve Hilton warned the tax would further strain California’s economy.

History

Historical Context

California’s 1978 voter revolt, Proposition 13, capped property taxes at 1% of an acquisition value and limited annual reassessments to 2%, slashing local revenue by roughly 60% in its first year. Signed by Governor Jerry Brown and championed by Howard Jarvis, the measure reshaped fiscal politics and now frames debate over Proposition 40’s proposed 5% wealth levy on billionaires.

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Billionaire Opposition Funding

California placed Proposition 40, a one-time 5 % tax on assets of residents with net worth over $1 billion, on the November 3, 2026 ballot.
Supporters argue the tax would fund Medi-Cal and shield vulnerable Californians from federal Medicaid cuts.
Proponents estimate it would raise about $100 billion, directing 90 % to Medi-Cal and 10 % to food aid and education.
Billionaires Sergey Brin, Larry Page and Mark Zuckerberg have donated over $127 million to campaigns opposing the tax.

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