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Prop 40: Billionaire Tax

California ballot, November 3, 2026: what it does, who's paying, and why

Money raised
Yes $32.4M No $139.7M as of October 27, 20261
Party positions
Democrats YES Republicans NO2,3,4
Cost / income (approx.)
+$10B once5
Special interest
Yes side: Medium · No side: High
Worth knowing
99% of the NO money comes from a billionaire-funded PAC, plus billionaire Chris Larsen and his company1
On the November 3 Ballot

Prop 40: Billionaire Tax

One-time 5% tax on net worth over $1 billion

Who paid to put it on the ballot SEIU-UHW, a healthcare workers' union, through a petition drive.

History Wealth tax bills died in committee in 2020, 2021, 2022 and 2024. Gov. Newsom said he would veto one.6,7

A YES vote means
The state would collect a one-time tax from billionaires equal to 5% of their wealth.8
A NO vote means
No billionaire tax.8
Yes side $32.4M No side $139.7M Who gains, who pays
Who it helps if it passes
  • Health care programs, which get most of the money
Who pays or loses if it passes
  • About 200 Californians worth more than $1 billion
What the funders get The YES side is almost entirely SEIU-United Healthcare Workers West, a union of healthcare workers. Most of the money would go to health care. On the NO side, most of the money comes from billionaires who would pay the tax.1

Cost to taxpayers A one-time increase of tens of billions of dollars, spread over several years. The state estimates income tax revenue could later drop by up to $1 billion a year if some billionaires leave.8

Imposes a one-time 5% tax on the net worth of roughly 200 Californians worth more than $1 billion. Supporters project about $100 billion over five years for health care, food assistance and education.8

Props 41 and 42 were put on the same ballot by opponents of this measure. If Prop 42 gets more yes votes than Prop 40, it cancels Prop 40 even if both pass.8

YES side special interest: Medium
  • ✓ One funder dominates: SEIU-United Healthcare Workers West paid 98% of the YES money1
  • ✓ Funders profit: The union's members work in health care, where most of the money goes (our judgment)
  • ✗ Narrow benefit: Health care programs statewide (our judgment)
  • ✗ Outside money: 1% of the YES money came from outside California1
NO side special interest: High
  • ✓ One funder dominates: Building a Better California paid 92% of the NO money1
  • ✓ Funders profit: Its billionaire funders would pay the tax if it passes (our judgment)
  • ✓ Narrow benefit: Defeating it mainly protects about 200 billionaires (our judgment)
  • ✗ Outside money: All top NO donors are in California1
Endorsed by
Opposed by
Funding the YES campaign
$32.4M1

Name on its ads: "Yes on 40 - Billionaire Tax Now – No on 41 & 42, Sponsored by Service Employees International Union - United Healthcare Workers West." 98% of this side's money is from SEIU-United Healthcare Workers West.1

  • SEIU-United Healthcare Workers West
    $31.8M
    The same committee also opposes Props 41 and 42
  • Individual donors
    $586K
    Including Saikat Chakrabarti and Ross Boucher, about $200K each
  • AFSCME Council 57
    $25K
Funding the NO campaign
$139.7M1

Name on its ads: "No on Prop 40 - Doctors, Teachers, Small Businesses, Working Families and Public Safety Against the Reckless Wealth Tax Experiment." 92% of this side's money is from Building a Better California.1

Sources for this measure: 1,6,7,8,9,10

Sources

  1. FPPC, Top 10 contributors, November 2026 General Election (data as of Oct 27, 2026)
  2. California Democratic Party, 2026 Proposition Endorsements (PDF)
  3. California Republican Party, 2026 Endorsements
  4. CalMatters, 2026 voter guide (party positions per measure)
  5. Official voter guide (CA Secretary of State), Quick Reference Guide: fiscal impact estimates by the Legislative Analyst
  6. CalTax, wealth tax bill history
  7. Bloomberg Tax, "California Wealth Tax Bill Dies Quick Death in Committee"
  8. Official voter guide (CA Secretary of State), Prop 40 quick reference
  9. CalMatters voter guide
  10. CalMatters: How 41 and 42 could cancel 40