California wealth tax ballot measure sparks billionaire opposition

A proposed one‑time wealth tax on California residents with a net worth of at least $1 billion has qualified for the November ballot as Proposition 40. Proponents, led by the Service Employees International Union‑United Healthcare Workers West, argue the tax could raise between $89 billion and $128 billion over five years, with 90 % earmarked for healthcare and the remaining 10 % for food security and K‑12 education. Opposing economists from the Hoover Institution estimate revenue of $35 billion to $46 billion, citing the risk that billionaires may leave the state.

Billionaire opponents have pledged nearly $87 million for a statewide TV advertising campaign. The coalition, Building A Better California, is funded largely by tech billionaire Sergey Brin, who has contributed about $82 million, along with donors such as John Doerr and Michael Moritz. The group also introduced counter‑propositions 41 and 42, which would require audits of tax‑funded programs and block new taxes on personal and financial assets. Governor Gavin Newsom opposes the state measure while supporting a national wealth tax. The battle is set to intensify as the election approaches.