Election Day · Nov 3, 2026
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Prop 40

Billionaire Tax

CA billionaire tax: Here's everything you need to know about Prop 40 · Read the ABC7 story

What it is

Proposition 40 is an effort to fund the state's healthcare system by taxing the ultra-wealthy. California's healthcare system faced severe cuts from the One Big Beautiful Bill Act after it was signed into law in July 2025. The measure would enact a one-time 5% tax on the accumulated wealth of California taxpayers who are worth more than $1 billion, about 250 people. That’s why it’s come to commonly be known as the “billionaire tax.” If it passes, Proposition 40 would apply to anyone who was a legal resident of California as of Jan. 1, 2026.

Full official text here.

What Your Vote Means

Voting YES

The state would collect a one-time tax from billionaires equal to 5 percent of their wealth.

Voting NO

The state would not collect a one-time tax from billionaires equal to 5 percent of their wealth.

Arguments

Supporters say

Proposition 40 will raise $100 billion, 90% of which will restore healthcare cuts. The other 10% will go to food assistance and public education. Bay Area Congressman Ro Khanna and Vermont Sen. Bernie Sanders are among the politicians who support Proposition 40. They argue a tax on billionaires is essential to tackle income inequality. SEIU United Healthcare Workers West argues healthcare cuts could lead to 3.4 million Californians losing their coverage.

More arguments here.

Opponents say

Proposition 40 is flawed. Some criticize how it's structured, giving 90% to one category - not raising funds for public safety, housing and wildfire prevention. Some also believe it could allow future legislatures to expand taxes. Democratic Gov. Gavin Newsom and California gubernatorial candidates Xavier Becerra and Steve Hilton oppose the bill. Newsom has called for a federal wealth tax, but has criticized Proposition 40, saying it could lead to California losing its competitive edge, driving wealthy residents and businesses out of the state.

More arguments here.

Fiscal Impact

Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires.

Campaign Finance

Supporting

$32,906,212

198 contributions · 87 contributors

  • Service Employees International Union, United Healthcare Workers West Nonprofit 501(c)(5)$22,077,899
  • SEIU United Health Care Workers West Political Issues Committee$7,725,664
  • SEIU United Healthcare Workers West PAC$2,000,000
  • Davis, Alan$325,000
  • Chakrabarti, Saikat$201,000
  • Boucher, Ross$200,000
  • Perkins, Hillary$100,000
  • Excessive Wealth$40,000
  • American Federation of State, County & Municipal Employees Council 57 Issues PAC$25,000
  • Connell, William$25,000
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  • Esler, John$25,000
  • O'Farrell, John$25,000
  • Stone, James$25,000
  • California Donor Table Issues Committee$20,000
  • Unitemized Contributions$14,866
  • JB Moss Voice of the Electorate (Vote) FED PAC ID# C00007898$10,000
  • Pesco, Nicole$10,000
  • Schlesinger, Mark$7,500
  • Olsen, David$5,100
  • Brotsky, Louise$5,000
  • Krieger, Betsy$5,000
  • Holtzman, Neil (Tony)$4,000
  • Sefton, Raquel$3,000
  • Moon Siefert, Linda$2,548
  • Friends of Chris Murphy$2,500
  • Lindsay, Katherine$2,500
  • Faulk, Andrew$2,000
  • Foschi, Patricia$2,000
  • Ottinger, Lawrence$1,250
  • Crabb, Tony$1,000
  • Hamer, Faroll$1,000
  • Irani, Lilly$1,000
  • LeVeque, Vincent$1,000
  • Siegler, Liza$1,000
  • Wallace, Margaret$1,000
  • Worthman, Linda$600
  • Altschul, David$500
  • Bader, Helena$500
  • Craig, Ashley$500
  • Skinner, William$400
  • Halgren, Eric$250
  • Kennedy Townsend, Kathleen$250
  • King, Mary$250
  • M Wood, Celia$250
  • Oppenheimer, Todd$250
  • Phelan, Maeve$200
  • Starr, Robert$200
  • Jacobson, Jodi$180
  • Reeves, Rachel$180
  • Wolf, Matthew$150
  • Twyman, Marianne$125
  • Amann, Christian$100
  • Antonescu, Maria$100
  • Bear, Benjamin$100
  • Belnap, Legrand$100
  • Berkson, Joseph$100
  • Brown, David$100
  • Chow, Allison$100
  • Connery, Christopher$100
  • Convergence$100
  • Curtis, Thomas$100
  • Davis, Brian$100
  • Davis, Gerald$100
  • Eichenhofer, Joseph$100
  • Eller, Wendy$100
  • Ghilarducci, Teresa$100
  • Ghosh, Anirban$100
  • Gilbert, Chris$100
  • Gillespie, Robert$100
  • Graziano, Marco$100
  • Hopf, Julian$100
  • Marks, Mary$100
  • Neumann, Rita$100
  • Pedroso, Jasmine$100
  • Pursley, Mark$100
  • Richmond, Jeff$100
  • Sawyer, Mark$100
  • Scalmanini, Stephen$100
  • Shannon, Gail$100
  • Siddiqui, Sabrina$100
  • Solari, Louisa$100
  • Stock, Jane$100
  • Walsh, Matthew$100
  • Weaver, Wendy$100
  • Wohlberg, Cynthia$100
  • Yanagisako, Sylvia$100
  • Zickuhr, Daniel$100

Opposing

$129,841,019

30 contributions · 12 contributors

  • Building a Better California$118,500,000
  • Larsen, Chris$5,000,000
  • Ripple Labs$5,000,000
  • California Business Roundtable Issues PAC$700,000
  • Tierney, Daniel$200,000
  • CALIFORNIA MEDICAL ASSOCIATION$100,000
  • California Primary Care Association Advocates$100,000
  • Conway, Ronald$100,000
  • Intersect USA, LLC(Michael Wheeler)$100,000
  • Planned Parenthood Affiliates of California VOTES PAC$34,294
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  • California Business Properties Association Issues PAC$5,000
  • PLANNED PARENTHOOD AFFILIATES OF CALIFORNIA, INC$1,726

Last updated on October 19, 2026. Source: CA Secretary of State Power Search