The California Democratic Party executive board voted Sunday to endorse Proposition 40, the one-time 5% wealth tax on billionaires. It needed a second vote to clear the 60% threshold. The measure is on the November 2026 ballot. It targets California residents worth more than $1 billion as of early 2026, raises an estimated $100 billion over five years, and sends most of the money to healthcare. Governor Gavin Newsom opposes it and wants a national version instead. Some major unions also oppose it.
- Party board endorsed Prop 40 after a tight second vote.
- One-time 5% tax on net worth over $1 billion.
- Hits about 200 to 250 California billionaires.
- Applies to people who lived in the state on January 1 2026.
- Expected to raise around $100 billion over five years.
- 90 percent goes to healthcare. Ten percent to education and food aid.
🇺🇸JUST IN: California Democrats officially back Billionaire tax, breaking with Governor Gavin Newsom and several of the state's most powerful labor unions.
Californians will vote on it in November, imposing a one-time 5% tax on billionaires if approved.
Supporters argue it will… pic.twitter.com/zVtj40PUya
— Coin Bureau (@coinbureau) August 3, 2026
San Francisco Chronicle — Aug 3 2026
Billionaire tax measure wins party backing
https://www.sfchronicle.com/politics/article/california-billionaire-tax-prop-40-22370956.php
Capital Group analysis — June 29 2026
Details on the 5% one-time tax and revenue use
https://www.capitalgroup.com/pcs/insights/articles/ca-billionaire-tax-2026.html