International Edition · Mon 26 Oct 2026
Politics · via The Wall Street Journal
California's Billionaire Tax Splits Democrats a Week Before the Vote
Proposition 40, a one-time 5% levy on residents worth more than $1 billion, has put the state party on one side and Governor Gavin Newsom on the other.
Chanan Zevin - Chief Editor and Head of Desks
Published
The fight
A proposed one-time tax on California's billionaires, meant to offset cuts to Medicaid, has exposed deep divisions among Democrats, The Wall Street Journal reported, with unusual alliances forming on both sides.
The measure
CalMatters reports that Proposition 40 would levy a one-time 5% tax on residents with a net worth above $1 billion, with most revenue earmarked for health care. The state Democratic Party narrowly endorsed it; Newsom and some unions oppose it, warning of tax flight.
The ballot
AP reports the measure is on the 3 November ballot, and that two rival measures, Propositions 41 and 42, could nullify it if they win more votes.
Our view
The vote is a test of a question every high-tax region now faces: how much can you tax mobile wealth before it moves?
Sources
- The Wall Street Journal, 'The Messy Fight Over California's Proposed Billionaire Tax Divides Democrats', The 10-Point, 26 October 2026 · wsj.com
- CalMatters, 'California Democrats choose populism in backing billionaire tax', August 2026 · calmatters.org
- AP News, 'Top Democrats join billionaires to fight a tax on California's wealthiest', 2026 · apnews.com