California's billionaire tax proposal

Proposition 40 would impose a one-time five percent tax on the wealth of Californians whose net worth exceeds one billion dollars. It would be the nation's first tax on billionaire wealth.

Where the money would go

Ninety percent of revenue would fund healthcare, replacing an estimated one hundred billion dollars in federal funding cuts over five years. The rest goes to education and food assistance.

Unlikely opposition coalition

Gov. Gavin Newsom, Planned Parenthood and the California Teachers Association oppose the measure alongside tech billionaires and venture capitalists, saying it will drive wealthy people out of California.

Massive spending imbalance

Opponents have raised more than three hundred million dollars against the measure, with nearly a third coming solely from Google co-founder Sergey Brin. Supporters have raised roughly thirty two point four million dollars.

Newsom's careful position

The governor has largely opposed tax increases during his eight years in office. He calls for a national billionaire tax instead, arguing a single-state proposal will hurt California's budget.

Sanders leads the yes campaign

Vermont Sen. Bernie Sanders and California Rep. Ro Khanna back the measure. Sanders declared at recent rallies that voters must decide whether to live in an oligarchic society controlled by the wealthiest.

“Are we destined to live in an oligarchic society begging for crumbs while our economic and political lives are controlled by a handful of the wealthiest people on Earth?”

Planned Parenthood's concerns

Jodi Hicks, CEO of Planned Parenthood's California chapter, said the organization is not opposed to wealth taxes but believes this proposal is seriously flawed and could do more damage than good.

“We're not opposed to the concept of a wealth tax. We just believe this proposal is seriously flawed and could do more harm than good.”

Expert skepticism on design

Cristobal Young, a sociology professor at Cornell University, said previous California tax increases on millionaires did not cause mass exodus. But he called this proposal poorly designed and favors tax code reforms instead.

Voters split on the measure

A September poll by the Public Policy Institute of California found fifty two percent of likely voters would vote yes on Proposition 40, while forty six percent would vote no.

Campaign spending surge

With mail ballots being sent to voters, opponents are spending roughly ninety six million dollars on airtime and digital messaging, compared with just two hundred nine thousand dollars by supporters.

Vote deadline approaches

California voters will decide Proposition 40 on November third, twenty twenty six. The measure applies to billionaires living in the state as of January first, twenty twenty six.