Propositions

Prop 40

About:

Known as the California Billionaire Class Act, it is a ballot initiative on the Nov. 3, 2026 ballot that proposes a one-time 5% wealth tax on state residents and trusts with more than $1 billion in net worth. A vote for it will put this money into 2 sub accounts: the Billionaire Tax Education which will take 90% of the funds and the Billionaire Tax Education and Food Assistance Account with the remaining 10% of revenue.

Argument For:

The core argument relies on the position that taxing the ultra-wealthy is a common sense and fair solution, comparing stock portfolio taxes to everyday property taxes. Proponents, including politicians and economists, assert that this tax is necessary to protect critical medical coverage and community hospitals following massive federal funding cuts. Furthermore, data is presented showing billionaires’ wealth grew dramatically while their actual state income tax payments accounted for a tiny fraction of their annual wealth, supporting the idea that a wealth tax ensures entire communities preserve access to life saving care without placing an undue burden on the ultra wealthy.

Argument for against:

Opponents argue that the tax will drive billionaires and wealthy individuals out of the state, severely shrinking the tax base and worsening revenue volatility. Critics also claim that the measure functions as a special interest funding tool for the SEIU rather than a viable healthcare fix, lacks the necessary operational specificity, and improperly addresses wealth taxation at a state level when it should be handled nationally by the federal government.

Supporters:

Opposers:

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