California Voters Reject Prop. 40 Billionaire Wealth Tax, CBS News Projects
Updated on: November 9, 2026 / 7:23 PM PST / CBS San Francisco
TL;DR
- California voters rejected Proposition 40, a proposed one-time tax on residents with a net worth of $1 billion.
- The measure was projected to generate $100 billion over five years, primarily for healthcare programs.
- Supporters framed it as a fight against economic inequality and the influence of the billionaire class.
- Opponents, including Governor Gavin Newsom and former Rep. Katie Porter, argued it would drive wealthy residents out of the state.
- A coalition of billionaires, including Google co-founders Sergey Brin and Larry Page, heavily funded the opposition.
- A Stanford University study suggested the tax might generate less revenue than proponents estimated and that some billionaires have already left the state.
- Economists like Daron Acemoglu and Joseph Stiglitz supported the measure, citing low income tax payments by billionaires relative to their wealth gains.