California Billionaires Face Historic Wealth Tax Vote

Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas are among more than 200 billionaires in California who may soon pay a significant price to keep their residences in the state. Proposition 40, heading to the November ballot, proposes a one-time 5 percent tax on the net worth of every individual in the state with a fortune of at least $1 billion. The measure is designed to raise approximately $100 billion, a sum intended to offset federal funding cuts to California’s healthcare system that resulted from President Donald Trump’s recent tax and spending legislation.

The path to this ballot measure began with a growing divide over how to sustain public health services. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West, a key leader in the campaign, described the proposal as a short-term solution. She warned that without such an intervention, the state risks a collapse of its healthcare infrastructure while longer-term funding models are developed. The initiative taps into a broader national conversation about economic disparity, with California holding the largest economy in the United States and the fourth largest globally, surpassing the size of India and the United Kingdom.

Despite its economic size, the state also faces significant social challenges. It has the nation’s largest share of homeless people and one of the widest wealth gaps in the country. Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that this appears to be the first billionaire tax of its kind, targeting an extremely high percentile of the wealth distribution. He characterized the sentiment behind the measure as anti-elite and anti-system, suggesting it is less about the specific tax and more about attempting to re-balance the economic scale.

The political opposition is led by Governor Gavin Newsom, whose tenure is coming to an end. He argues that the tax could drive wealthy residents and their associated income tax revenue out of the state. This concern has been echoed by some tech leaders. Google cofounder Sergey Brin has reportedly donated over $100 million to a political organization funding ballot measures that could block the proposal. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies showed that 45 percent of likely voters support the measure, while 42 percent oppose it and 13 percent remain undecided. A simple majority is required for passage.

If voters approve Proposition 40, the tax will apply retroactively to anyone worth at least $1 billion who lived in California as of January 1, 2026. Several billionaires have already begun to move. Reports indicate that at least six have left, including Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber chief Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes that he relocated to Nevada because the proposal made him feel unwelcome despite the jobs his companies created.

Major corporate figures are also reconsidering their ties to the state. Meta chief Mark Zuckerberg informed the company’s board last month that he was considering moving his primary residence out of California. To mitigate potential losses, Meta agreed to a new stock deal granting him additional shares. He could owe as much as $12.5 billion if the tax passes. Andy Fang, a cofounder of DoorDash, criticized the measure as stupid, highlighting the friction between tech leadership and progressive fiscal policy.

Supporters argue that the wealthy should share the burden of maintaining public services. Nvidia chief Jensen Huang told CBS that he does not mind paying taxes and believes that those with higher incomes should contribute more. Senator Bernie Sanders, speaking at a Los Angeles rally, suggested that billionaires feel they have a God-given right to rule and predicted they would learn a powerful lesson on November 3. The vote comes as US inequality remains near its highest level in over three decades, with the top 1 percent of households holding nearly 32 percent of wealth in the third quarter of 2025.

The debate in California mirrors broader trends in wealth taxation. Washington state voters are currently weighing a 9.9 percent tax on income over $1 million annually. Meanwhile, wealth taxes have become rare in Europe, with only Spain, Norway, and Switzerland still employing them. Kristian Niemietz of the Institute of Economic Affairs has described such levies as more trouble than they are worth. In California, where 72 percent of residents believe the gap between rich and poor is widening, the upcoming vote serves as a test of whether state governments can use extraordinary fiscal tools to address persistent inequality.