By Salma El-Sakka
Californians voted Tuesday on Proposition 40, a ballot measure that would impose a one-time 5 percent tax on residents with net worths exceeding $1 billion, potentially making California the first U.S. state to tax billionaire wealth.
Measure aims to offset federal healthcare cuts
Most revenue would replace federal funding cuts to healthcare, with the union SEIU United Healthcare Workers West estimating a $100 billion loss over five years. Labor leaders argue the tax is needed to protect the healthcare system.
Deep divisions among Democrats
Vermont Sen. Bernie Sanders supports the measure as a step against wealth inequality, while Gov. Gavin Newsom warns it would drive the wealthy out of state. Traditional allies like Planned Parenthood and the California Teachers Association oppose it, citing concerns over revenue allocation and potential budget impacts.
Record spending fuels campaign
The opposition has raised roughly ten times more than supporters, fueled by tech moguls and venture capitalists. Google co-founders Sergey Brin and Larry Page have reduced ties to the state, while Mark Zuckerberg arranged a deal with Meta to pay the tax without losing his stake.
Voters split in polls
A mid-October Public Policy Institute of California poll showed 52 percent of likely voters opposed the measure, 46 percent in favor, a shift from early September when support led. Even if approved, the measure could be blocked by two competing ballot initiatives backed by a committee that has raised over $333 million.
