200 Californians face $100 billion wealth levy in November vote

More than 200 residents of California, including Mark Zuckerberg, Oprah Winfrey, Kim Kardashian, and George Lucas, are on the hook for a potential $100 billion payment. This figure represents the estimated total raise from a one-time 5% tax on the net worth of every billionaire in the state. The measure, known as Proposition 40, appears on the ballot in November 2026.

Supporters argue the levy is a necessary stopgap to stabilize the state’s healthcare system. Federal funding cuts stemming from President Donald Trump’s recent tax and spending bill have created a deficit that state officials say cannot be ignored. Suzanne Jimenez of Service Employees International Union-United Healthcare Workers West described the proposal as a "short-term solution." She warned that without action, the healthcare system faces collapse while lawmakers search for a permanent funding model.

Governor Gavin Newsom, whose term is concluding, leads the opposition. He cautions that the tax could incentivize wealthy residents to leave the state, thereby reducing income tax revenue. Google co-founder Sergey Brin has backed a political organization with more than $100 million to fund ballot measures that could block the levy. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies shows 45% of likely voters support the measure, 42% oppose it, and 13% remain undecided. A majority vote is required for passage.

The tax would apply retroactively to anyone with a net worth of at least $1 billion who resided in California on January 1, 2026. At least six billionaires have already moved, including Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber CEO Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he relocated to Nevada because he felt unwelcome under the proposal. Meta CEO Mark Zuckerberg told his board last month he is considering moving his primary residence, and Meta recently approved a stock deal to offset the $12.5 billion he could owe.

Francesco Trebbi, a public policy professor at the University of California, Berkeley, believes this is the first billionaire tax of its kind in the world. It targets the extreme upper percentile of the wealth distribution. While some wealthy residents oppose the measure, Nvidia chief Jensen Huang told CBS he does not mind paying taxes in proportion to his income. Senator Bernie Sanders predicted at a Los Angeles rally that voters would teach billionaires a "powerful lesson" on November 3.

The vote arrives as US inequality reaches near-record levels, with the top 1% of households holding nearly 32% of wealth in the third quarter of 2025. In California, 72% of residents believe the gap between rich and poor is widening. Meanwhile, Washington state voters are also weighing a 9.9% tax on income over $1 million, though only Spain, Norway, and Switzerland currently maintain similar wealth taxes in Europe.