Californians Vote on Bill That Could Cost Billionaires $100 Billion

On November 3, California residents will cast ballots on a measure that could require the state’s wealthiest residents to pay billions of dollars in a single year. Proposition 40 proposes a one-time tax of 5% on the total net worth of every individual in the state who is worth at least one billion dollars. If voters approve the measure, approximately 200 billionaires, including Mark Zuckerberg and Oprah Winfrey, would be subject to the payment.

Supporters argue the revenue is necessary to stabilize the state's healthcare system. The tax is designed to offset federal funding cuts resulting from a recent tax and spending bill signed by President Donald Trump. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the levy as a temporary fix. She told the BBC that without such a solution, the healthcare system faces collapse while longer-term funding strategies are developed.

The proposal is being framed as a novel approach to wealth distribution. Francesco Trebbi, a public policy professor at the University of California, Berkeley, believes this is the first tax specifically targeting the extreme upper percentile of the wealth distribution. He noted that the measure reflects an anti-elite sentiment and an attempt to re-balance the economic scale rather than a focus on the specific mechanics of the tax.

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

The tax would apply retroactively to anyone who was worth at least $1 billion and lived in California as of January 1, 2026. At least six billionaires have reportedly left the state, including Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber chief Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he moved to Nevada because the proposal made him feel unwanted despite the jobs his companies created.

Meta chief Mark Zuckerberg told his board last month that he is considering moving his primary residence out of California. The company, which is headquartered in the state, agreed to a new stock deal giving him additional shares to cover potential losses. He could owe as much as $12.5 billion under the proposal. DoorDash co-founder Andy Fang called the measure stupid.

Some wealthy residents support the tax. Nvidia chief Jensen Huang told CBS that he does not mind paying taxes and accepts that higher income requires higher payments. Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have a God-given right to rule. He predicted that voters would teach them a powerful lesson on November 3.

California is not the only US state considering such levies. Washington state voters are weighing a 9.9% income tax on earnings over $1 million a year. In Europe, wealth taxes were once common, but only Spain, Norway, and Switzerland currently have them. Dr. Kristian Niemietz of the Institute of Economic Affairs calls such levies more trouble than they are worth.

The vote comes as US inequality reaches near its highest level in over three decades. 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 to address it.