California Billionaires: 5% One-Time Tax Faces November Vote

California voters will decide in November whether to impose a one-time 5% tax on the net worth of every billionaire living in the state. The measure, known as Proposition 40, targets a group of more than 200 individuals, including Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas. If passed, the levy would apply retroactively to anyone worth at least $1 billion who resided in California as of January 1, 2026.

Supporters estimate the tax will generate $100 billion to address federal funding cuts to the state’s healthcare system. These cuts stem from President Donald Trump’s recent tax and spending legislation. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the proposal as a short-term fix. She told the BBC, “If we do nothing, we're going to see a collapse of our healthcare system, while we figure out a longer-term solution to fund our healthcare.”

Governor Gavin Newsom, whose term is ending, leads the opposition. He warns that the tax could drive wealthy residents and their income tax revenue out of the state. Google co-founder Sergey Brin has contributed over $100 million to a political organization funding ballot measures that could block the proposal. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found 45% of likely voters in favor, 42% opposed, and 13% undecided. A majority is required to pass the measure.

Several billionaires have already moved out of the state in response to the proposal. At least six residents, including Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber boss Travis Kalanick, and Hankey Group founder Don Hankey, have reportedly left. Hankey told Forbes that he relocated to Nevada because the proposal made him feel he was not “wanted.” Meta chief Mark Zuckerberg informed the company’s board last month that he is considering moving his primary residence out of the state. Meta agreed to a new stock deal to cover potential losses, which could amount to $12.5 billion for Zuckerberg. DoorDash co-founder Andy Fang called the measure “stupid.”

Some wealthy supporters back the tax. Nvidia chief Jensen Huang told CBS that he does not mind paying taxes and that higher incomes should mean higher tax burdens. Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have “a God-given right to rule” and predicted that “on November 3 they're going to learn a very powerful lesson.”

The vote comes as wealth inequality in the United States reaches near-record levels. The top 1% of households held nearly 32% of wealth in the third quarter of 2025. According to the Public Policy Institute of California, 72% of Californians say the gap between rich and poor is widening, and a similar share believes the state government should do more. Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that the measure is driven by an “anti-elite, anti-system sentiment” and aims to “re-balance the scale a little bit.”

Washington state voters are also weighing a 9.9% tax on income over $1 million. Meanwhile, only Spain, Norway, and Switzerland currently maintain wealth taxes in Europe. Dr. Kristian Niemietz of the Institute of Economic Affairs described such levies as “more trouble than they are worth.”