California Billionaire Tax Trails in Early Count

Proposition 40, a one-time 5% levy on the state's billionaires, was behind as ballots were tallied after the November 3 election.

Updated on Nov. 5, 2026 in Elections

California Billionaire Tax Trails in Early Count

Live Poll

Should billionaires pay a one-time wealth tax to fund healthcare programs?

With 60% of the estimated vote counted, Proposition 40 was trailing, with 55.6% of counted ballots opposing the one-time 5% levy on the assets of California's estimated 250 billionaires. The measure was projected to raise an estimated $100 billion.

Why it matters

The measure was designed to fund healthcare programs that stand to lose billions in federal funding after last year's tax cut package. Opponents argued it would drive the ultrawealthy from the state and discourage startup founders from building companies in California.

The count was 60% complete, with 55.6% of ballots opposing Proposition 40 and 3.4 million yes votes tallied. Competing Proposition 42 won 4.1 million votes, and its language could void the tax if it receives more support.

The players

Sergey Brin

Google co-founder and billionaire who contributed to Building a Better California's campaign against Proposition 40.

Building a Better California

Campaign committee that raised money from billionaires and spent over $300 million opposing the billionaire tax and supporting two other initiatives.

Enrico Moretti

UC Berkeley economist who argued that taxing the ultrawealthy would sap the state of jobs and reduce overall state revenue.

Emmanuel Saez

UC Berkeley economist who predicted Proposition 40 is not the last attempt to fight back against billionaires.

The details

Proposition 40 was a one-time 5% levy on the assets of billionaires, and Los Angeles County showed a razor-thin majority in favor while the six next-largest counties were down by double digits. Google co-founder Sergey Brin and at least 11 other billionaires contributed a collective $269 million to Building a Better California, which spent more than $300 million on campaigns against the measure and supporting two other initiatives.

November 3, 2026: Election day for Proposition 40 and other measures.
November 4, 2026: Vote counting showed Proposition 40 trailing.

Political Context

Proposition 40 was proposed to offset healthcare funding lost under last year's federal tax cut package, and opponents argued it would push wealthy residents out of the state. Economist Emmanuel Saez predicted this measure will not be the last attempt to tax billionaires in California.

If the billionaire tax passes with more votes than competing measures, its funds would go toward healthcare programs facing federal cuts. If a competing measure wins more votes, the billionaire tax could be invalidated.

The takeaway

Ballot outcomes on tax measures can hinge on competing initiatives whose language interacts with one another, so voters should read how measures affect each other. Watch the final count, since early results can shift as remaining ballots are tallied.