California voters are set to decide whether to impose a one‑time 5% tax on the net worth of the state’s more than 200 billionaires, a measure that could raise $100 bn to shore up the state’s health‑care system. The proposition, known as Prop 40, would target the wealthiest 0.01% of residents, including media mogul Oprah Winfrey, Meta head Mark Zuckerberg, Skims co‑founder Kim Kardashian and filmmaker George Lucas.
Supporters say the tax would help close California’s widening wealth gap and compensate for federal funding cuts, with chief of staff Suzanne Jimenez of Service Employees International Union‑United Healthcare Workers West calling it a “short‑term solution” to prevent a collapse of the state’s health‑care system. The measure also enjoys backing from some billionaires, such as Nvidia CEO Jensen Huang.
Opposition comes from a range of figures, including Google co‑founder Sergey Brin, who has donated more than $100 m to a political organisation that could block the tax, and Governor Gavin Newsom, who warns the measure could drive wealthy residents away and cut crucial income‑tax revenue. A September poll found 45% of likely voters favor the tax, 42% oppose and 13% are undecided, meaning the measure needs a majority to pass.
California is not alone in exploring wealth taxes; Washington voters are considering a 9.9% “millionaires tax” on income over $1 m. In Europe, only Spain, Norway and Switzerland still impose wealth taxes, with critics citing administrative burdens and capital flight.
The outcome of Prop 40 will shape California’s fiscal future and could set a precedent for other states and countries grappling with wealth inequality and public‑service funding.
