California Prop 40 Results: Billionaire Wealth Tax Explained
Summary
California Proposition 40 was trailing in the vote count, with 44.4 percent support and 55.6 percent opposition after about 60 percent of votes had been counted Wednesday. The proposal would create a one-time 5 percent tax on the net worth of California residents worth more than $1 billion; its sponsor said it may pursue another ballot measure in 2028.Key Facts
- Proposition 40 was sponsored by the Service Employees International Union–United Healthcare Workers West (SEIU-UHW).
- The tax would apply to Californians with a net worth above $1 billion and include financial assets and other property interests.
- The proposed tax would be due in 2027, with payments spread over five years at an additional cost.
- Supporters estimated the tax could raise about $100 billion over five years; the Legislative Analyst's Office projected tens of billions.
- The proposal would direct 90 percent of its revenue to healthcare services.
- SEIU-UHW said it could return with a billionaire tax measure in 2028 if lawmakers do not address healthcare funding.
- Google co-founder Sergey Brin contributed $102 million to a group opposing Proposition 40 and supporting Propositions 41 and 42.
- Governor Gavin Newsom opposed the tax, warning that it could prompt wealthy residents to leave California.
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