California voters to decide on one-time 5% billionaire tax in upcoming midterms
Proposition 40, a ballot measure proposing a one-time 5% tax on California billionaires to fund health-care and other services, faces intense opposition funded by tech moguls and support from unions and some Democrats as the midterm election approaches.
California voters will decide next week whether to approve Proposition 40, a ballot initiative that would impose a one-time 5% tax on residents with billionaire-level wealth as of Jan. 1, 2026. The revenue is earmarked for health-care programs, as well as education and food-assistance initiatives.
The measure was championed by Dave Regan, president of the health-care union SEIU-United Healthcare Workers West, who said the tax was a response to projected Medicaid and ACA cuts that could affect more than 3.4 million Californians. "That’s why we were willing to do something that lots of people said was crazy," Regan said, adding that inaction would leave millions without coverage.
Opposition to the proposal has coalesced around a group of Silicon Valley billionaires who have contributed more than $356 million to independent-expenditure political committees. The opposition’s spending in October alone exceeded $42.8 million, according to campaign filings. "This looks like it’s going to be the most expensive ballot measure ever," said David McCuan, a political-science professor at Sonoma State University.
Supporters have relied on social-media outreach and rallies featuring figures such as artist Shepard Fairey and actor Mark Ruffalo. During a recent event, Senator Bernie Sanders said the debate was drawing international attention.
Tech leaders, including Google co-founder Sergey Brin, have organized a Signal chat to coordinate their response. Brin, who has contributed at least $102 million through the Super Pac "Building a Better California," is described as the de facto ringleader of the opposition. Abby Lunardini, a spokesperson for the Super Pac, said Californians need to know the facts about a measure that could "permanently gut the state’s budget, tax base, and economic advantage."
The opposition also filed counter-proposals, Proposition 41 and Proposition 42, which would block the billionaire tax if they receive more affirmative votes than Proposition 40.
Union and Democratic support has grown, with endorsements from the California Federation of Labor AFL-CIO, Congressman Ro Khanna, and a slate of labor unions. The California Democratic Party ultimately endorsed the measure after internal debate.
Polls show the race tightening; a recent survey indicated the lead for Proposition 40 has narrowed to a single point. Regardless of the outcome, Regan said the campaign has elevated the issue of wealth inequality on the national agenda.