California Billionaires Face Potential $100 Billion Windfall for Voters

The figure hanging over California’s political landscape is $100 billion. That is the amount supporters claim Proposition 40 would raise through a one-time 5% tax on the net worth of every billionaire residing in the state. The measure heads to the ballot in November, asking voters to decide whether to collect these funds to address significant gaps in the state’s healthcare system.

The proposal targets a specific group of individuals, including well-known figures such as Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas. There are just over 200 billionaires living in California. Proponents argue the tax is a necessary response to federal funding cuts resulting from recent national tax and spending legislation. Suzanne Jimenez, representing the Service Employees International Union, described the measure as a short-term solution. She warned that without action, the state risks a collapse of its healthcare infrastructure while longer-term funding strategies are developed.

California holds the largest economy in the United States and ranks as the fourth largest globally, surpassing nations like the UK and India. Despite this economic might, the state also has the highest number of homeless residents in the country and one of the most significant wealth disparities. Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that this appears to be the first billionaire tax of its kind, specifically targeting the extreme upper percentile of wealth distribution.

The opposition is led by Governor Gavin Newsom, who is ending his tenure. He argues that the tax could prompt wealthy residents to leave the state, thereby reducing overall income tax revenue. Sergey Brin, a Google co-founder, has contributed over $100 million to a political organization aimed at funding ballot measures that could block the tax. A recent poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies showed 45% of likely voters in favor, 42% opposed, and 13% undecided. A majority vote is required for passage.

If approved, the tax would apply retroactively to anyone with a net worth of at least $1 billion who lived in California as of January 1, 2026. Several billionaires have already reported leaving the state. This group includes Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber CEO Travis Kalanick, and Don Hankey, founder of the Hankey Group. Hankey told Forbes he moved to Nevada because the proposal made him feel unwanted, despite the jobs his companies created.

Mark Zuckerberg told Meta’s board last month that he is considering moving his primary residence out of the state. Meta, which is headquartered in California, agreed to a new stock deal that would give Zuckerberg additional shares to offset the billions he might lose. He could owe up to $12.5 billion under the new rules. Andy Fang, co-founder of DoorDash, described the measure as stupid.

Not all wealthy individuals oppose the levy. Nvidia chief Jensen Huang told CBS that he does not mind paying taxes and believes those who earn more should pay more. Senator Bernie Sanders, speaking at a rally in Los Angeles, stated that billionaires often believe they have a God-given right to rule. He predicted that voters would teach them a powerful lesson on November 3.

Other states are considering similar measures. Washington state voters are weighing a 9.9% tax on annual income over $1 million. In Europe, wealth taxes were once common but are now limited to Spain, Norway, and Switzerland. Kristian Niemietz of the Institute of Economic Affairs described such levies as more trouble than they are worth. US inequality has reached levels not seen in over three decades, with the top 1% of households holding nearly 32% of wealth in the third quarter of 2025. Trebbi said the measure reflects an anti-elite sentiment and is less about the specific tax and more about rebalancing the scale.