California voters reject Proposition 40, the first US billionaire wealth tax
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The gist
California voters rejected Proposition 40, a one-time billionaire wealth tax, with about 55% voting no.
Its defeat tests taxing the ultra-rich nationally, and backers vow a 2028 rematch.
Background
Proposition 40 was a California ballot measure that would have imposed a one-time tax on the wealth of billionaires — the first such tax implemented in the United States. It was pushed by SEIU United Healthcare Workers West, a healthcare workers' union, which argued the money was needed to replace an estimated $100 billion in federal healthcare funding the state expects to lose over five years. The measure split Democrats in California and nationally as the party debates its direction, and drew opposition from outgoing Governor Gavin Newsom and from critics in both parties who warned wealthy residents would leave the state.
How it unfolded
- Nov 3, 2026California holds its election; Proposition 40, the billionaire wealth tax, and rival measures 41 and 42 go before voters.
- Nov 4, 2026With just over 56% opposed at 10 p.m., No on Prop 40 leads; No on Prop 41 has nearly 53%, and Proposition 3 passes with almost 59% by 2:55 a.m.
- Nov 5, 2026Secretary of State filings show No on Prop 40 with 4,447,252 votes (55%) to 3,631,937 (45%), a gap of 815,315; Yes on Prop 42 leads with 53.8% and No on Prop 41 with 52.9%.
- Nov 9, 2026NBC News projects Proposition 40 rejected, and The Associated Press determines the No side had enough votes to win; the Yes on 40 campaign says buying an election is not the same as winning the debate.
- Nov 10, 2026Telemundo, The Morning Call, Houston Chronicle and Express-News report the rejection of Proposition 40.
Key terms
- Proposition 40
- A California ballot measure put to voters for a direct vote that can change state law or the state constitution.
- ballot measure
- Proposals placed on the ballot for citizens to vote on directly, either enacting or rejecting legislation.
- wealth tax
- A tax on an entity's total assets or net worth, including cash, property, and securities.
Source: Wikipedia
Who’s saying what
- Support
- Senator Bernie Sanders, who rallied in California for the measure, argued the tax was a way to fund healthcare amid federal cuts, and the Yes on 40 campaign said it will put a wealth tax back on the ballot in 2028 if patients are not protected.
- Caution
- Outgoing Governor Gavin Newsom opposed it, warning it could drive wealthy taxpayers out and hurt state finances, though he said Sanders's focus on wealth inequality was right and he backs a national minimum tax on fortunes over $100 million.
- Party
- Critics from both parties said the tax would trigger a mass exodus of California's richest residents, drain other tax revenue and worsen budget problems.
- Public
- Robert Swonger, an independent and auto glass technician near Sacramento, said he planned to vote no: he would like billionaires not to have so much money, but does not think taxing them until they disappear will work.
Still unverified
Revenue figures are estimates, not money collected or proven losses; the union projected $100 billion over five years, while the Legislative Analyst's Office projected tens of billions spread over several years and estimated that relocations could cut annual income tax revenue by less than $1 billion. The Nov 5 results were preliminary, with ballots still being counted, and the KQED/AP count reflects a different cut of the state record and may vary.