California Voters Reject Billionaire Tax Proposition 40

California Voters Reject Billionaire Tax, Dealing Blow to Labor and Progressives

Proposition 40, which would have imposed a one-time 5 percent wealth tax on billionaires, failed despite backing from unions and national Democratic figures, undone by massive opposition spending led by Google co-founder Sergey Brin.

The Political Desk

Gokhshtein Media

November 10, 2026

3 min read

Wikimedia Commons / Tony Webster from Minneapolis, Minnesota, United States (CC BY-SA 2.0)

California voters rejected Proposition 40, a ballot measure proposing a one-time 5 percent tax on most of a billionaire's overall wealth, including company ownership stakes. The defeat marks a significant loss for labor unions and progressive Democrats who pushed the measure as a revenue source for healthcare programs.

The SEIU-UHW union representing healthcare workers spearheaded the campaign for Proposition 40, arguing it could generate an estimated $100 billion for healthcare initiatives. Proponents contended that a Republican-controlled Congress had cut healthcare funding, making it necessary for wealthy Californians to help fill the gap.

The state's Democratic Party officially backed the measure, as did national figures including Rep. Ro Khanna of California and Sen. Bernie Sanders of Vermont, who campaigned in the state for its passage.

Yet the measure divided California Democrats at every level. Gov. Gavin Newsom publicly opposed it, saying he preferred a national wealth tax over a state-specific one. Democratic gubernatorial candidate Xavier Becerra also opposed Proposition 40. A leading teachers union voiced opposition as well, citing concerns that only a small portion of projected revenue would reach schools.

Opposition campaigns hammered the measure with claims that the tax would drive wealthy residents out of California, ultimately costing the state revenue. Google co-founder Sergey Brin led the opposition effort, which vastly outspent supporters—at least five times as much money flowed into opposing the measure as into supporting it, according to campaign finance reports.

Brin also orchestrated placement of two additional ballot proposals designed to block the wealth tax from taking effect even if voters had approved Proposition 40.

The outcome represents a clear victory for wealthy Californians and their financial allies, while organized labor and progressive advocates suffer a setback in their push for wealth redistribution. It underscores the difficulty of enacting significant wealth taxes at the state level.

Brin also orchestrated placement of two additional ballot proposals designed to block the wealth tax from taking effect even if voters had approved Proposition 40.