California Billionaire Tax: Can $110 Million Buy a No Vote?
California’s richest residents are digging deeper into their pockets to stop a ballot measure that would take a slice of their fortunes. Over the past few weeks, a handful of billionaires and wealthy tech figures have pumped tens of millions of additional dollars into fighting the California billionaire tax, a proposal that would impose a one-time 5% levy on anyone in the state holding more than $1 billion in assets. With the November election approaching, the fight over Proposition 40 has turned into one of the most expensive political battles in the state’s recent history.
Key takeaways
- Proposition 40 would levy a one-time 5% wealth tax on California residents worth more than $1 billion, with proceeds earmarked for healthcare funding.
- The opposition group Building a Better California has amassed $110 million as of late June and reserved $87 million in advertising ahead of November.
- A UC Berkeley poll found 48% of likely voters support the tax while 41% oppose it, with the split running largely along party lines.
- Google cofounder Sergey Brin has committed $102 million to fighting the measure, while entrepreneur Mark Cuban has warned publicly against it.
- Sens. Bernie Sanders and Ro Khanna have introduced federal legislation to extend a similar wealth tax nationwide.
Proposition 40’s One-Time Billionaire Wealth Tax
Proposition 40 targets a very specific group: Californians with net worths above $1 billion. If voters approve it, those residents would owe a single 5% tax on their assets, with the money directed toward boosting healthcare funding across the state. It’s not a recurring annual tax — the measure is designed as a one-time collection tied to the current wave of extreme wealth concentrated in California, home to some of the world’s richest tech founders and investors.
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