Story perspectives

California Voters to Decide Proposition 40 Wealth Tax in 2026

By Drooid · Oct 22, 2026, 10:54 PM UTC · How we work

Left

Billionaires fund opposition

California voters will decide on Proposition 40, a 5 percent wealth tax on residents with net worth over $1 billion, on Nov. 3 2026.
Supporters say the tax ensures fairness and funds services for low-income Californians, a fight against inequality led by California Federation of Labor and Senator Bernie Sanders.
$100 billion is projected, mainly for healthcare to keep 3.5 million Californians insured.
Billionaire opponents Sergey Brin and Peter Thiel are spending $1 million daily to defeat the measure.

Right

Constitutional Retroactivity Challenge

California voters will decide Proposition 40, a one-time 5% tax on residents with net worth over $1 billion, on Nov. 3, 2026.
Critics say the measure may breach constitutional retroactivity rules and could drive billionaires away, warned economist Art Laffer.
Union president Dave Regan faces assault allegations, which the SEIU calls a motivated attack.
Meta will give Mark Zuckerberg non-voting shares to keep him in California for tax reasons.

Blindspot

Critics say the one-time 5 percent billionaire tax may violate the California constitution and be retroactive, creating legal vulnerability, according to legal analysts.
Within this story's sources, this legal-risk angle appears mainly in Right-leaning coverage and receives less attention in Left-leaning coverage.

History

Historical Context

The 1932 Revenue Act, signed by President Herbert Hoover, lifted the top income rate to 63% and doubled the estate tax, raising revenue for federal programs. Later, Roosevelt’s 1935 act pushed the highest bracket to 75%, earning the “Soak the Rich” nickname. Today, California’s Proposition 40 proposes a 5% billionaire surcharge, echoing those early progressive tax experiments.

1 of 4

Billionaires fund opposition

California voters will decide on Proposition 40, a 5 percent wealth tax on residents with net worth over $1 billion, on Nov. 3 2026.
Supporters say the tax ensures fairness and funds services for low-income Californians, a fight against inequality led by California Federation of Labor and Senator Bernie Sanders.
$100 billion is projected, mainly for healthcare to keep 3.5 million Californians insured.
Billionaire opponents Sergey Brin and Peter Thiel are spending $1 million daily to defeat the measure.

1 / 4