NewsABC7 News San Francisco (KGO-TV)November 4, 2026San Francisco County
California voters to decide on Prop 40 billionaire tax
Photo: ABC7 News San Francisco (KGO-TV)
Proposition 40 would enact a one-time 5% tax on the accumulated wealth of California residents worth over $1 billion. The measure aims to raise $100 billion to fund healthcare restoration, food assistance, and public education.
Read the full story at ABC7 News San Francisco (KGO-TV)Why It Matters
The measure directly impacts the state's wealthiest residents through a one-time 5% tax on fortunes exceeding $1 billion, while potentially altering healthcare funding and state budget stability for millions of Californians.
Key Facts
- Proposition 40 proposes a one-time 5% tax on the accumulated wealth of California residents worth more than $1 billion.
- The tax would affect approximately 250 people in California.
- The measure applies to anyone who was a legal resident of California as of Jan. 1, 2026, if it passes.
- Supporters estimate the tax will raise $100 billion.
- Ninety percent of the raised funds are designated to restore healthcare cuts.
- Ten percent of the funds will go toward food assistance and public education.
- Supporters argue that healthcare cuts threaten 3.5 million Californians with loss of coverage and 20 million with higher premiums.
- Opponents, including Governor Gavin Newsom and Xavier Becerra, argue the tax could drive wealthy residents and businesses out of the state.
- Opponents raise concerns that 38% of the state budget already comes from the top 1% of earners.
Who's Mentioned
PersonStuart Waldman“Advocate for economic growth and public policy”PersonGovernor Newsom“Governor of California, opponent of Prop 40”PersonDave Regan“President of SEIU United Healthcare Workers Trust”locationLos Angeles“City associated with business community advocacy”locationCalifornia“State where the ballot measure is being decided”otherOne Big Beautiful Bill Act“Legislation causing severe cuts to the state's healthcare system”OrganizationSEIU United Healthcare Workers Trust“Union that spearheaded Proposition 40”otherProposition 40“Ballot measure proposing a wealth tax on billionaires”PersonXavier Becerra“Secretary and gubernatorial candidate, opponent of Prop 40”