California voters reject billionaire wealth tax
California voters defeated Proposition 40, a one-time 5 percent tax on billionaire wealth. The measure, which would have raised about $100 billion for healthcare, lost with 54 percent against it.
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In early November 2026, California voters prepared to decide on Proposition 40, a proposed one-time 5 percent tax on the wealth of billionaire residents. The measure faced opposition from wealthy Californians and business executives, while experts described its broader economic impact as nuanced. California Democrats were divided over the proposal during the midterm cycle.
Voters rejected the measure with 54 percent against and 46 percent for it, according to a projection after 76 percent of votes were counted. The result was a win for Governor Gavin Newsom and business leaders who opposed the tax, despite support from state party members and unions. The defeated measure would have sent most revenue to state healthcare, with the rest to food assistance and education.
The campaign for Proposition 40 became the most expensive ballot campaign in state history. The defeat may hamper nationwide momentum for taxing the ultra-wealthy, though union leaders pledged to seek the tax again in 2028. Notable opponents included Google co-founder Sergey Brin and other Silicon Valley executives.
Latest updates
4 updates · newest first- 10 NovNew development
California voters reject proposed one-time tax on billionaire wealth
California voters defeated Proposition 40, a proposed one-time 5% tax on individuals with a net worth over $1 billion, in the most expensive ballot campaign in state history. The measure, which would have raised about $100 billion to fund healthcare, faced opposition from Governor Gavin Newsom and Silicon Valley executives, including Google co-founder Sergey Brin. The result may hamper nationwide momentum for taxing the ultra-wealthy, though union leaders pledged to seek the tax again in 2028.
The Guardian ↗
BBC News ↗
- 7 NovNew development
California rejects billionaire wealth tax in win for Newsom
California voters rejected Proposition 40, a one-time 5 percent tax on billionaire wealth, with 54 percent against and 46 percent for it, according to a projection after 76 percent of votes were counted. The measure would have sent most revenue to state healthcare, with the rest to food assistance and education. The result was a win for business executives and Gov. Gavin Newsom, who opposed it despite state party and union support.
The Hill ↗
- 3 NovNew development
California Democrats divided over billionaire wealth tax
California Democrats are divided over a wealth tax on billionaire residents, which voters will decide in the midterm cycle. Wealthy Californians are organizing against the measure, while experts say its broader economic impact is nuanced.
- 1 NovNew development
California voters to decide billionaire wealth tax in Proposition 40
California voters will decide in this midterm cycle whether to impose a wealth tax on billionaire residents. A yes vote on Proposition 40 would support a one-time 5 percent tax on billionaires' wealth, as wealthy Californians organize against the measure and experts describe its broader economic impact as nuanced.