California Ballot Measure Imposes $100 Billion Levy on 200 Residents

California residents will vote on November 3 on whether to fund healthcare by taxing the state’s wealthiest individuals. Proposition 40 proposes a one-time 5% levy on the net worth of every billionaire living in the state. Approximately 200 residents meet this threshold, including Mark Zuckerberg, Oprah Winfrey, Kim Kardashian, and George Lucas.

The measure seeks to raise $100 billion to address federal funding cuts to California’s healthcare system. These cuts stem from President Donald Trump’s tax and spending legislation. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the proposal as a "short-term solution." She told the BBC that inaction risks a "collapse of our healthcare system" while longer-term funding strategies are developed.

California holds the largest state economy in the United States and ranks fourth globally, surpassing India and the United Kingdom. Despite this economic output, the state has the largest share of homeless people in the nation and one of the widest wealth gaps. Francesco Trebbi, a public policy professor at the University of California, Berkeley, characterized the proposal as the first billionaire tax targeting an extreme percentile of the wealth distribution.

Governor Gavin Newsom, whose term is ending, opposes the measure. He warns the tax could drive wealthy residents and their associated income tax revenue out of the state. Google cofounder Sergey Brin has contributed over $100 million to a political organization funding ballot measures that could block the tax, according to the Los Angeles Times. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found 45% of likely voters in favor, 42% opposed, and 13% undecided. A majority is required for passage.

If approved, the tax applies retroactively to anyone worth at least $1 billion who resided in California as of January 1, 2026. At least six billionaires have reportedly left the state. Among them are Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber chief Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he moved to Nevada because the proposal made him feel he was not "wanted" despite the jobs his companies created.

Mark Zuckerberg informed Meta’s board last month that he is considering moving his primary residence out of California. Meta, headquartered in the state, agreed to a new stock deal giving Zuckerberg additional shares to offset potential losses. He could owe as much as $12.5 billion under the measure. DoorDash cofounder Andy Fang called the measure "stupid."

Supporters among the wealthy argue the tax aligns with standard progressive principles. Nvidia chief Jensen Huang told CBS, the BBC’s US partner, that he does not mind paying taxes and that higher income warrants higher tax payments. Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have a "God-given right to rule" and predicted voters would teach them a "very powerful lesson" on November 3.

Washington state voters are also weighing a 9.9% "millionaires tax" on annual income over $1 million. Wealth taxes were once common in Europe, but only Spain, Norway, and Switzerland still maintain them, according to Kristian Niemietz of the Institute of Economic Affairs. Niemietz described such levies as "more trouble than they are worth."

The top 1% of US households held nearly 32% of wealth in the third quarter of 2025, a level near its highest in over three decades. According to the Public Policy Institute of California, 72% of Californians say the gap between rich and poor is widening, and a similar share believes state government should do more. Trebbi stated the measure is driven by "anti-elite, anti-system sentiment" and is "really not about Prop 40" but about trying to "re-balance the scale a little bit."