On Nov. 3, Californians will decide whether to impose a wealth tax on the state’s richest residents, which proponents say will fill holes in state budgets, and which opponents warn will drive entrepreneurs and investment out of the state.
Proposition 40, the so-called “billionaire tax,” would impose a one-time 5 percent tax on the assets of an estimated 260 residents who have more than $1 billion in net worth, according to California Billionaire Wealth Tracker, which monitors the Forbes Real-Time Billionaires list.
The tax is supported by the California Democratic Party, Sen. Bernie Sanders (I-Vt.), and unions including Teamsters California, AFSCME California, and Service Employees International Union-United Healthcare Workers West, the group that put the measure on the ballot. Supporters projects that the wealth tax would raise roughly $100 billion over five years, and fund healthcare, food assistance, and education, which faced federal funding cuts under the One Big Beautiful Bill Act passed in 2025….