California voters will decide November 3 whether to tax the state’s richest residents on their wealth itself. Proposition 40 would impose a one-time 5 percent tax on net worth above $1 billion, measured as of January 1, 2026 — a levy aimed at the roughly 200 billionaires who live in the state, the New York Times reports.
The measure was put on the ballot by Dave Regan, president of SEIU-United Healthcare Workers West. Supporters project it would raise about $100 billion over five years, with 90 percent dedicated to health care — money intended to backfill the federal health-care cuts in the 2025 “One Big Beautiful Bill.” Regan says 3.5 million people are losing coverage.
Proposition 40, in brief
- On the November 3, 2026 California ballot; placed there by SEIU-UHW president Dave Regan
- A one-time 5% tax on net worth above $1 billion (as of Jan. 1, 2026) — about 200 taxpayers
- Supporters project ~$100 billion over five years; 90% dedicated to health care
- Gov. Gavin Newsom opposes it and has vowed to campaign against it
Gov. Gavin Newsom opposes the measure and has vowed to campaign against it. The Times reports the initiative is the most ambitious Regan has ever qualified for a ballot — and that some Democrats hope it will be his final one.
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