California Billionaire Tax: Voters Face $100 Billion Healthcare Levy

The ballot box will decide the fate of a historic financial experiment in California.

Voters in November will determine whether to impose a one-time 5% tax on the net worth of every billionaire residing in the state. The measure, known as Proposition 40, targets a population of slightly more than 200 individuals, including Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas. If passed, the levy is projected to raise $100 billion to address federal funding cuts to the state’s healthcare system resulting from recent federal tax and spending legislation.

Supporters argue the measure is a necessary immediate fix for a strained system. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the proposal as a short-term solution. She warned that inaction would lead to a collapse of healthcare services while longer-term funding structures are developed. Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that this appears to be the first billionaire tax targeting such an extreme percentile of the wealth distribution.

The state presents a stark economic contrast. California possesses the largest economy of any US state and the fourth largest globally, surpassing India and the United Kingdom. Despite this economic weight, the state holds the nation’s largest share of homeless people and one of the widest wealth gaps. This disparity drives the political momentum behind the measure.

Governor Gavin Newsom, whose term is ending, has emerged as a prominent opponent. He warns the tax could drive wealthy residents and their income tax revenue out of California. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found that 45% of likely voters support the measure, 42% oppose it, and 13% remain undecided. A simple majority is required for passage.

Several billionaires have already relocated, and others are considering moves. At least six, including Google cofounders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber chief Travis Kalanick, and Hankey Group founder Don Hankey, have reportedly left the state. Hankey told Forbes that moving to Nevada made him feel unwelcome despite the jobs his companies created. Mark Zuckerberg told Meta’s board he is considering moving his primary residence, with the company agreeing to a stock deal to help cover his potential tax liability of up to $12.5 billion.

Not all wealthy residents oppose the levy. Nvidia chief Jensen Huang told CBS that he does not mind paying taxes and accepts that higher earners should pay more. Senator Bernie Sanders spoke at a Los Angeles rally, predicting that billionaires would learn a powerful lesson on November 3. If approved, the tax would apply retroactively to anyone worth at least $1 billion who lived in California as of January 1, 2026.

The measure fits into a wider national discussion on inequality. Washington state voters are simultaneously weighing a 9.9% tax on income over $1 million. Data from the third quarter of 2025 shows the top 1% of households hold nearly 32% of US wealth. Trebbi described the push for the tax as driven by anti-elite sentiment aimed at re-balancing the economic scale.