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Politics

California Voters Reject Proposition 40, the One-Time Tax on Billionaires

The Associated Press called the race late Monday, with the no side ahead by about five points. The measure would have placed a one-time 5% tax on the net worth of California residents worth more than $1 billion to raise about $100 billion for health care.

By admin Nov. 10, 2026 · 8:11 AM ET 2 min read

The California State Capitol building in Sacramento, with its white dome and columns, framed by trees and lawn in late afternoon light

California voters have rejected Proposition 40, a ballot measure that would have placed a one-time 5% tax on the wealth of the state’s billionaires. The Associated Press called the race on Monday, nearly a week after voters went to the polls on November 3, with the no side leading 52.8% to 47.2%.

People walking toward a modern civic building on a palm-lined street in California in the morning

The measure would have applied to Californians with a net worth above $1 billion who were residents of the state on January 1, 2026. The tax, equal to 5% of net worth, would have been due in 2027, with an option to spread payment over five years at an added cost. Real estate, pensions and retirement accounts were generally excluded. About 200 billionaires live in California, according to estimates cited in campaign coverage.

The measure was placed on the ballot by the healthcare workers’ union SEIU-United Healthcare Workers West, which estimated it could raise about $100 billion over five years. Ninety percent of the proceeds would have gone to health care, chiefly Medi-Cal, the state’s Medicaid program, with the rest funding education, food assistance and tax administration.

A record-spending campaign

The vote followed a wide spending gap. Opponents raised as much as $379 million, according to TechCrunch, while supporters raised about $32 million. The billionaire-funded political action committee Building a Better California spent more than $304 million against the measure. Google co-founder Sergey Brin gave $100 million to the campaign for Proposition 42, a rival measure on the same ballot.

A hand placing a blank white paper ballot into the slot of a dark ballot box

Proposition 42, which would ban retroactive taxes, was leading with 51.6% of the vote on Monday with 83% of ballots counted, but the Associated Press had not called that race. Brin also backed Proposition 41, a second measure meant to cancel the wealth tax if it had passed.

Democrats split over the tax

The result exposed a split inside California’s Democratic leadership. The state Democratic Party backed Proposition 40, and Senator Bernie Sanders of Vermont and Representative Ro Khanna of California campaigned in favor of it. Governor Gavin Newsom opposed the tax, arguing that billionaires would find ways to avoid it or leave the state, and that a national tax on the wealthy would be a better approach. Governor-elect Xavier Becerra also opposed it.

The San Francisco skyline at dusk, with City Hall in the foreground and fog over the bay

Polling before the vote had pointed to a narrow defeat. An October survey by U.C. Berkeley’s Institute of Governmental Studies found 50% of likely voters opposed the measure and 42% in favor, while a separate October poll by the Public Policy Institute of California put opposition at 52% and support at 46%. San Francisco was a notable exception to the statewide result, backing the measure by roughly 56% to 44%.

The results remain unofficial until certified by the California Secretary of State, and counting continued into Monday. Supporters have said they could put a similar tax back on the ballot in 2028.

Reporting based on coverage by Le Monde and NationWire.

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