California Billionaires Face $100 Billion One-Time Health Care Levy on Ballot
Proposition 40 would tax the net worth of 200 wealthy residents to offset federal cuts, a move Governor Gavin Newsom warns could trigger a mass exodus.
By Amina Kaminski ·
California holds the nation's largest state economy, yet it also reports the highest share of homeless residents and one of the widest wealth gaps. On November 3, voters will decide whether to impose a one-time 5% tax on the net worth of every billionaire living in the state.
Proposition 40 targets a little more than 200 individuals, including Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas. Campaign leaders project the levy will raise $100 billion to replace federal healthcare funding lost under President Donald Trump's recent tax and spending legislation. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the measure as a "short-term solution." She warned that without action, the state faces a "collapse of our healthcare system" while officials seek longer-term funding.
Governor Gavin Newsom, whose term is ending, opposes the proposal. He argues the tax could drive wealthy residents and their income tax revenue out of California. Google cofounder Sergey Brin has donated over $100 million to a political group funding ballot measures that could block the initiative. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found 45% of likely voters support the measure, 42% oppose it, and 13% are undecided. A simple majority is required for passage.
If approved, the tax would apply retroactively to anyone worth at least $1 billion who resided in California on January 1, 2026. At least six billionaires have reportedly left the state since the proposal emerged. Among them are 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 he moved to Nevada because the proposal made him feel "not wanted" despite the jobs his companies created.
Meta CEO Mark Zuckerberg told the company's board last month he is considering moving his primary residence out of California. Meta agreed to a new stock deal giving him additional shares to offset potential losses; he could owe as much as $12.5 billion. DoorDash cofounder Andy Fang called the measure "stupid." Nvidia chief Jensen Huang, who supports the tax, told CBS that he does "not mind paying taxes" and accepts that higher income requires higher payments.
Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have "a God-given right to rule." He predicted they will "learn a very powerful lesson" on November 3. Washington state voters are also weighing a 9.9% "millionaires tax" on income over $1 million. Dr. Kristian Niemietz of the Institute of Economic Affairs noted that only Spain, Norway, and Switzerland still maintain wealth taxes in Europe, calling such levies "more trouble than they are worth."
US inequality is near its highest level in over three decades, with the top 1% of households holding nearly 32% of wealth in the third quarter of 2025. The Public Policy Institute of California reports that 72% of Californians say the gap between rich and poor is widening. Francesco Trebbi, a public policy professor at the University of California, Berkeley, said the measure is driven by an "anti-elite, anti-system sentiment" and is about trying to "re-balance the scale a little bit."
