California Ballot Measure Aims to Levy $100 Billion on State Billionaires

Voters in California are preparing to decide whether the state should collect a one-time 5% tax on the net worth of every billionaire residing there. The measure, known as Proposition 40, targets a group of slightly more than 200 individuals. If passed, the state would raise approximately $100 billion to help fund its healthcare system.

Supporters argue that this revenue is necessary to offset federal funding cuts caused by President Donald Trump’s recent tax and spending legislation. Suzanne Jimenez, a leader with the Service Employees International Union-United Healthcare Workers West, described the plan as a temporary fix. She warned that without immediate action, the state’s healthcare system could collapse while long-term funding strategies are developed.

The proposal is notable because it targets an extreme segment of the wealth distribution. Francesco Trebbi, a public policy professor at the University of California, Berkeley, believes this is the first billionaire tax of its kind. California has the largest economy in the United States and the fourth largest globally, exceeding the economic output of India and the United Kingdom. Despite this wealth, the state also has the highest number of homeless people and one of the widest gaps between rich and poor.

Governor Gavin Newsom, whose term is ending, is a prominent opponent. He argues that the tax could drive wealthy residents and their income tax revenue out of the state. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found that 45% of likely voters support the measure, while 42% oppose it. Thirteen percent remain undecided, meaning a majority is required for passage.

If approved, the tax would apply retroactively to anyone who lived in California and had a net worth of at least $1 billion as of January 1, 2026. Several billionaires have already left the state, including Google cofounders Larry Page and Sergey Brin. Meta chief Mark Zuckerberg told his board he was considering moving his primary residence. Meta agreed to a stock deal to help him cover potential losses, which could reach $12.5 billion.

Some wealthy individuals support the levies. Nvidia chief Jensen Huang said he does not mind paying taxes and that higher earners should pay more. Senator Bernie Sanders predicted that voters would send a strong message to billionaires on November 3. Other states are considering similar measures, such as Washington state’s proposed tax on high incomes. Experts note that wealth taxes are rare in the United States but still exist in a few European countries.

The debate reflects broader concerns about economic inequality in the United States. The top 1% of households held nearly 32% of the nation’s wealth in the third quarter of 2025. Most Californians believe the gap between the rich and poor is widening. Trebbi suggests the measure is driven by a desire to rebalance the economic scale and express frustration with the elite.