Story perspectives

California voters weigh 5% billionaire net-worth tax in Prop 40

By Drooid · Oct 18, 2026, 4:18 PM UTC · How we work

Left

Billionaire Money Dominates

California voters will decide Nov. 3, 2026 whether to approve Proposition 40, a 5% tax on billionaire net worth as of Jan. 1, 2026.
Opponents, led by billionaires, have poured over $340 million into the campaign, while volunteers canvass to protect health-care, education and food aid for Californians.
The pro-yes side has raised under $33 million, mainly from health-care unions.
Sergey Brin gave $102 million; PAC Building a Better California backs Props 41/42 to block Prop 40.

Right

Entrepreneur Exodus Concern

California voters will decide on Nov. 3, 2026 whether to approve Proposition 40, a one-time 5% tax on the net worth of billionaire residents as of Jan. 1, 2026.
Business leaders and Republican officials say the tax will drive entrepreneurs out of California.
Governor Gavin Newsom opposes Proposition 40 and supports Proposition 42, favoring a national billionaire wealth tax.
Mark Cuban and Eric Schiffer warned would create a ‘sucking sound’; poll found 50% oppose.

Blindspot

Billionaire donors have contributed over $340 million to oppose Proposition 40, including at least $102 million from Google co-founder Sergey Brin, according to campaign-finance reports.
Within this story's sources, this angle appears mainly in Left-leaning coverage and receives less attention in Right-leaning coverage.

History

Historical Context

During the Great Depression, President Herbert Hoover signed the Revenue Act of 1932, lifting the top income rate from 25 % to 63 % and projecting about $250 million in extra revenue. The 1935 act later pushed the rate to 75 %. California’s 2026 Proposition 40, a one-time 5 % levy on billionaire net worth, revives this historic wealth-tax debate.

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Billionaire Money Dominates

California voters will decide Nov. 3, 2026 whether to approve Proposition 40, a 5% tax on billionaire net worth as of Jan. 1, 2026.
Opponents, led by billionaires, have poured over $340 million into the campaign, while volunteers canvass to protect health-care, education and food aid for Californians.
The pro-yes side has raised under $33 million, mainly from health-care unions.
Sergey Brin gave $102 million; PAC Building a Better California backs Props 41/42 to block Prop 40.

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