California Voters Set to Approve $100 Billion Billionaire Levy

California has long maintained the largest state economy in the United States, a status that currently places it ahead of nations like India and the United Kingdom in total output. That economic dominance now faces a direct challenge from its own wealthiest residents. Proposition 40, appearing on the November ballot, proposes a one-time 5% tax on the net worth of every billionaire residing in the state.

The measure targets a group of more than 200 individuals, including Mark Zuckerberg, Oprah Winfrey, Kim Kardashian, and George Lucas. If passed, the levy would generate approximately $100 billion. Supporters argue this revenue is necessary to fill a gap created by federal funding cuts to the state's healthcare system. These cuts stem from the sweeping tax and spending bill enacted by President Donald Trump. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the proposal as a "short-term solution" to prevent a collapse of medical services while longer-term funding strategies are developed.

Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that this is likely the first tax specifically targeting the extreme top percentile of the wealth distribution. He attributed the push for the levy to a growing "anti-elite, anti-system sentiment" that seeks to "re-balance the scale a little bit." This sentiment aligns with data from the Public Policy Institute of California, which reports that 72% of Californians believe the gap between rich and poor is widening.

Governor Gavin Newsom, whose term is ending, leads the opposition. He warns that the tax could drive wealthy residents and their income tax revenue out of the state. Google cofounder Sergey Brin has donated over $100 million to a political organization funding ballot measures intended to block the proposal. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found that 45% of likely voters support the measure, while 42% oppose it and 13% remain undecided. A simple majority is required for passage.

The retroactive nature of the tax applies to anyone worth at least $1 billion who lived in California as of January 1, 2026. At least six billionaires have reportedly left the state, including Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber boss Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes that he moved to Nevada because the proposal made him feel he was not "wanted," despite the jobs his companies created. Meta chief Mark Zuckerberg told the company's board last month that he is considering moving his primary residence out of California. Meta agreed to a new stock deal to give him additional shares, potentially covering a loss of up to $12.5 billion.

Not all wealthy residents oppose the levy. Nvidia chief Jensen Huang told CBS that he does not mind paying taxes, stating, "The more you make, the more taxes you pay. I'm okay with that." Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have "a God-given right to rule" and predicted that "on November 3 they're going to learn a very powerful lesson." DoorDash cofounder Andy Fang called the measure "stupid."

California is not the only state considering such measures. Washington state voters are weighing a 9.9% tax on income over $1 million a year. Dr. Kristian Niemietz of the Institute of Economic Affairs noted that wealth taxes were once common in Europe but now exist only in Spain, Norway, and Switzerland. He described such levies as "more trouble than they are worth." The national context remains tense, with the top 1% of households holding nearly 32% of wealth in the third quarter of 2025, the highest level in over three decades.