California Votes on Proposition 40, a One-Time 5% Tax on Billionaires' Wealth

California voters decided Tuesday, Nov. 3, 2026, on Proposition 40, a ballot measure that would impose a one-time 5% tax on the wealth of California taxpayers and trusts with a net worth above $1 billion. Supporters say it would raise about $100 billion from roughly $2.3 trillion in wealth held by the state's billionaires in mid-2026. Most of the money would replace federal healthcare funding cuts, with some also going to public education and food assistance. The tax would be payable over five years and would cover businesses, securities, art, collectibles and intellectual property, while real property, pensions and certain retirement accounts would be exempt. As drafted, it would apply retroactively to people who were California residents on Jan. 1, 2026. Vermont Sen. Bernie Sanders backs the measure as a way to make the ultra-rich pay their fair share, while Democratic Gov. Gavin Newsom warns it would drive the wealthiest residents and their tax money out of the state. The "no" side has raised roughly 10 times as much as the "yes" side, largely from tech executives and venture capitalists. Tax experts say a competing measure banning state taxes on retirement accounts could be the strongest challenge to the tax.

Right-leaning outlets Fox News and Fox Business lead with the economic stakes. Fox Business features gubernatorial candidate Steve Hilton and California Business Roundtable President Robert Lapsley warning of job losses. It names Larry Page, Sergey Brin, Larry Ellison and Peter Thiel as billionaires who have left or moved businesses, and it cites an analysis suggesting the tax could permanently shrink the state's tax base. Fox News mainly offers an election-results page that references the measure. Alternative outlets CNBC and The Hindu add different angles: CNBC focuses on the rival retirement-account measure as a possible "poison pill," and The Hindu stresses the split among liberal leaders, citing Sanders and Newsom and the fundraising gap. Both sides describe the same core terms of the tax. Right outlets stress the risk of departures, while alternative outlets stress the political and legal fight. Left-leaning outlets had not reported this story at the time of writing, while right-leaning and alternative outlets had.