Billionaire tax: how a union leader’s ‘crazy’ idea became the defining issue of California’s midterms
Summary
California voters are set to decide on Proposition 40, a proposed one-time 5% tax on billionaires who lived in the state on January 1, 2026. The measure grew from a union-led effort to address expected health coverage losses linked to federal cuts and has become a costly, divisive campaign, drawing opposition from tech billionaires and support from progressive politicians and public figures.Key Facts
- SEIU-United Healthcare Workers West president Dave Regan helped develop the proposal after President Donald Trump signed the One Big Beautiful Bill Act on July 4.
- The article says the federal law will cut about $1 trillion in Medicaid, Affordable Care Act and other health funding over a decade.
- The article estimates that more than 3.4 million Californians could lose health coverage when the law takes effect in January.
- Proposition 40 would impose a one-time 5% tax on billionaires living in California on January 1, 2026.
- The proposal would direct revenue to health programs as well as some education and food assistance.
- Opponents, including tech billionaires, have contributed more than $356 million to political action committees opposing the measure.
- The opposition campaign spent more than $42.8 million in the first two weeks of October, according to the latest campaign filings cited in the article.
- Supporters have promoted the measure through social media and rallies featuring figures including Bernie Sanders, Shepard Fairey and Mark Ruffalo.
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