California Proposition 40 wealth tax heads to November ballot

California’s Proposition 40, a ballot measure proposing a one-time 5% wealth tax on the state’s wealthiest residents, has qualified for the November election. Sponsored by the labor union SEIU United Healthcare Workers West, the initiative targets approximately 200 residents with a net worth exceeding $1 billion. If passed, the tax would be payable in annual 1% installments over five years.

Proponents estimate the measure could raise roughly $100 billion. The funds would be allocated with 90% directed toward health care programs like Medi-Cal, while the remaining 10% would be split between education and food assistance. The initiative qualified after collecting over 980,000 valid signatures, significantly exceeding the required 875,000.

The measure has caused political friction within the Democratic Party. While labor groups like SEIU-UHW strongly support the tax, other traditionally allied organizations and Governor Gavin Newsom have expressed opposition. Recent polling indicates that support for the proposition currently holds a narrow lead, reflecting a highly competitive and contentious political landscape as the election approaches.