California voters reject billionaire tax measure
The gist
California voters rejected Prop. 40, a one-time 5% tax on billionaires' wealth, by 54% to 46%.
The defeat ends a national first attempt to tax wealth directly.
How it unfolded
- Jun 2026Gov. Gavin Newsom wrote in a Substack post that he supports a federal billionaire tax but opposed Prop. 40 for dedicating almost all of the revenue to healthcare.
- Sep 25, 2026A UC Berkeley Institute of Governmental Studies poll found Prop. 40 at 45% support and 42% opposition among likely voters, with 13% undecided.
- Sep 28, 2026Opponents of the 5% billionaire tax and measures designed to block it had raised $187 million, compared with $32 million for supporters.
Key terms
- Prop. 40
- A California ballot measure combining a constitutional amendment and statute, nicknamed the billionaire or wealth tax.
- Legislative Analyst's Office
- A nonpartisan California government agency that provides fiscal and policy advice to the state Legislature.
- Secretary of State
- The chief clerk of a U.S. state who oversees elections and official records.
Source: Wikipedia