California Voters Weigh Billionaire Tax and Countermeasures
California Voters Weigh Billionaire Tax and Countermeasures
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Key Points
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Proposition 40 would direct 90% of its revenue to health care for low-income Californians and the remaining 10% to education and food-assistance programs.
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The Public Policy Institute of California poll surveyed 1,103 likely voters from Sept. 4–10 and had a margin of error of 3.8 percentage points, providing context for the 52%-to-46% result.
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Prop. 40 supporters face a strategic challenge because Prop. 41 and Prop. 42 also drew majority support: Prop. 42 led with 54%, while Prop. 41 had 51%. PPIC survey director Mark Baldassare said supporters of the tax must address the fact that voters are backing the countermeasures as well.
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Google co-founder Sergey Brin has spent more than $100 million on several ballot initiatives intended to address taxes, governance reform and building rules while defeating the billionaire tax; Proposition 41 is primarily funded by Brin along with venture capitalists John Doerr and Michael Moritz.
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Several other high-profile initiatives were withdrawn before the ballot was finalized: Uber and trial lawyers pulled rival measures after reaching a deal with state lawmakers, while health care labor unions and the California Hospital Association agreed to withdraw proposals concerning hospital executive pay and health-union spending.
California voters will decide November 3 on Proposition 40, a one-time 5% tax on the assets of roughly 200 to 250 billionaires living in the state. PPIC found 52% of likely voters support the measure and 46% oppose it, though supporters and opponents are locked in a tight battle over funding health care, education, and food assistance programs.
The proposal could raise tens of billions of dollars, potentially up to $100 billion Yahoo Finance, but faces fierce opposition from Gov. Gavin Newsom and wealthy business leaders who warn it could drive jobs and taxpayers out of California. Two competing ballot measures backed by Google co-founder Sergey Brin could effectively nullify Prop. 40 if they pass instead.
How the Money Would Be Spent
Proposition 40 would direct 90% of revenue to health care for low-income Californians Common Dreams, with the remaining 10% going to education and food-assistance programs. Supporters say the tax would offset expected cuts to Medicaid funding and strengthen the state's social safety net. The measure allows billionaires to pay the tax over five years rather than in a lump sum.
Wealthy Opponents Fear Mass Exodus
Governor Newsom and business leaders argue Prop. 40 could trigger an exodus of California's richest residents and companies. AOL quoted entrepreneur Eric Schiffer warning of a "giant sucking sound" of business leaders leaving the state AOL. Opponents claim the wealth tax would damage the economy and reduce job creation, though supporters cite research showing wealth taxes can raise substantial revenue without significant tax-driven migration.
Rival Ballot Measures Threaten to Block Prop. 40
Proposition 41 and Proposition 42, both backed by Sergey Brin, would impose audits on new taxes and bar levies on personal property like financial assets and retirement accounts. PPIC survey director Mark Baldassare noted that Prop. 42 leads with 54% support and Prop. 41 has 51% — both higher than Prop. 40's 52%. Either measure could effectively nullify Prop. 40's key provisions, meaning the billionaire tax needs more yes votes than its rivals to take effect.
Brin has spent more than $100 million on ballot initiatives focused on taxes, governance reform, and building rules New York Magazine. Venture capitalists John Doerr and Michael Moritz also fund Proposition 41, making it one of the most heavily financed campaigns in California's 2026 election.
Sentiment
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