California Voters to Decide on Billionaire Tax Proposal
California voters are heading to the polls today to decide on Proposition 40, which would levy a one-time, five percent tax on residents with a net worth exceeding $1 billion.
California’s election day features a vote on Proposition 40, a ballot measure that seeks to impose a one-time, five percent tax on the estimated 240 state residents with a net worth surpassing $1 billion. The proposal has sparked intense political debate, with supporters citing wealth inequality while opponents have deployed significant funding to defeat it.
The measure faces a difficult path, with recent polling and betting markets suggesting a low probability of passage. Further complicating the outcome are Propositions 41 and 42, which are designed to nullify the billionaire tax if they receive more votes, even if the primary measure is approved.
Should the tax pass, the fiscal impact for some of the state's highest-net-worth individuals would be substantial. Forbes estimates that Meta CEO Mark Zuckerberg could face a tax obligation of approximately $10.9 billion. Governor Gavin Newsom has publicly opposed the measure, alongside a heavily funded opposition campaign.