California Voters Reject Prop 40 Billionaire Tax Amid Democratic Divide
California voters have rejected Proposition 40, a one-time 5% wealth tax on billionaires that divided prominent Democrats across the state and the nation, npr.org reported Monday.
- Proposition 40 proposed a one-time 5% tax on the net worth of billionaires residing in California as of January 1, 2026, with the payment due in 2027.
- The ballot measure was defeated with 52.9 percent of voters rejecting it against 47.1 percent in favor, according to the Secretary of State’s semi-official count.
- Opponents vastly outspent supporters, raising more than $333 million through the committee Building a Better California, with Google co-founder Sergey Brin contributing over $100 million.
Proponents of the measure, led by the healthcare workers union SEIU-UHW, argued that the tax could raise roughly $100 billion primarily for healthcare programs. Opponents countered that the levy would prompt wealthy residents and state revenue to flee, ultimately damaging the economy, noting that the state has more than 200 billionaires, with some estimates putting the number at a few hundred.
The ballot measure exposed deep fissures within the Democratic Party. While the California Democratic Party, Representative Ro Khanna, and Senator Bernie Sanders campaigned in favor of the tax, Democratic Governor Gavin Newsom opposed it. Newsom argued that taxation of the wealthy should be handled at the federal level rather than through state-level ballot initiatives, warning it would drive the state’s wealthiest residents away while considering a run for president in 2028.
Other prominent opponents included the Democratic candidate for governor, Xavier Becerra. Supporters voiced their positions across platforms, with Senator Sanders endorsing the tax in a December 2025 statement he posted on X by stating, Our nation will not thrive when so few own so much,
and Representative Khanna calling Proposition 40 the most important ballot initiative in America
in an October post on X.
According to newsweek.com, the opposition committee Building a Better California raised more than $333 million, outraising supporters by roughly tenfold, with spending against the measure being at least five times as much as favoring it. Google co-founder Sergey Brin personally contributed over $100 million to defeat the measure. Brin also helped organize two countermeasure proposals designed to block the billionaire tax from taking effect if voters had approved it.
While those specific blocking measures ultimately proved unnecessary, a related constitutional amendment designated as Proposition 42 led in voting counts to write a ban on new taxes on financial assets into the state constitution.
Disclaimer: The information provided in this article is for educational and scientific communication purposes only and does not constitute medical advice. Always consult with a qualified healthcare provider regarding any medical condition, diagnosis, or treatment plan.
Yes: We need a wealth tax on billionaires. pic.twitter.com/2OUwSos5De
Prop 40 is the most important ballot initiative in America. A 5% tax on the 989 billionaires in our country would raise $4 trillion. We have to ask a basic question: Are we going to be New Deal Democrats or donor class Democrats? pic.twitter.com/0s7HmfC0DQ