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California’s Proposition 40 Vote Set for 2026, Tax Fight Intensifies

By Drooid · Oct 17, 2026, 2:25 PM UTC · How we work

Summary

Story summary

California voters will decide on Proposition 40, a one-time 5% wealth tax on billionaires, on Nov. 3, 2026.
Opponents have spent over $340 million, driving poll margins up to 15 points toward a “no” vote.
Legislative Analyst’s Office projects tens of billions in revenue over several years, timing uncertain.
Billionaire Sergey Brin contributed more than $100 million to a nonprofit backing competing measures, prompting tech executives to relocate from California.

History

Historical Context

Senator Elizabeth Warren revived a federal wealth-tax idea in 2019, proposing a 2 % levy on fortunes above $50 million—a concept later formalized in the 2021 Ultra-Millionaire Tax Act that projects $3 trillion over ten years. Building on that momentum, the SEIU-UHW filed California’s 2026 Billionaire Tax Initiative, a one-time 5 % charge expected to raise tens of billions, despite opposition from Governor Gavin Newsom.

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Story summary

California voters will decide on Proposition 40, a one-time 5% wealth tax on billionaires, on Nov. 3, 2026.
Opponents have spent over $340 million, driving poll margins up to 15 points toward a “no” vote.
Legislative Analyst’s Office projects tens of billions in revenue over several years, timing uncertain.
Billionaire Sergey Brin contributed more than $100 million to a nonprofit backing competing measures, prompting tech executives to relocate from California.

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