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California Voters to Decide on Novel Billionaire Tax Proposal
Confirmed
In Short: California voters are set to decide on Proposition 40, a novel tax proposal targeting billionaires, in the upcoming November election.
California voters are set to decide on Proposition 40, a novel tax proposal targeting billionaires, in the upcoming November election. The measure, which has never been attempted anywhere else in the world, aims to address significant wealth disparities within the state.
Proposition 40, spearheaded by healthcare workers union leader Dave Regan, seeks to impose a one-time 5% state tax on the net worth of California's approximately 200 billionaires. The initiative was driven by the need to restore $100 billion worth of health care cuts, according to Regan.
The proposal has garnered significant attention, with billionaire tech entrepreneur Jensen Huang, founder and CEO of Nvidia, weighing in. Huang, who started as a dishwasher at Denny's and now has a net worth of about $200 billion, noted that even paying $8 billion over five years would be a small price to pay for the proposed benefits.
Support for Proposition 40 is currently narrow, with a recent poll of over 1,100 likely voters showing slim majorities in favor of the measure. However, a significant portion of voters also support countermeasures backed by billionaires that would nullify the wealth tax.
Opposition to the proposal is strong, with billionaire Larry Brin spending more than $100 million to oppose it. Critics argue that such a tax would discourage investment and innovation, with some billionaires threatening to leave the state if the measure passes.
The tax would apply to individuals whose net worth reaches $1 billion as of December 31, 2026, and who were California residents on January 1, 2026. This means that only those who meet these criteria would be subject to the tax, according to Proposition 40's architects.
In Silicon Valley, wealth inequality has become increasingly pronounced, with the top 10% of households by income holding 75% of the wealth, while the bottom half holds less than 2%. This stark disparity has fueled the push for Proposition 40, which aims to address these inequalities.
What this adds
Reports vary on the number of children a Chinese billionaire supposedly has, with one former partner claiming it could be as many as 300, highlighting the complex personal lives of some of the world's wealthiest individuals.
What's confirmed
- A woman in California, US, recently learned she is carrying a baby for Chinese gaming billionaire Xu Bo.
What's still developing
- October 18, 2026 / 9:27 AM EDT / CBS News When California voters head to the polls next month, they'll be asked whether to adopt a new proposal that calls for billionaires to be taxed like never before.
- "People who have enough money to live on their investments and inheritances legally don't have to pay any taxes."
- "but a five-year solution is better than no solution. And that gives the state of California an opportunity to figure out what's the right permanent solution."
- Start with a basic question: How much do billionaires pay in taxes?
- This is a 14-point difference in one of the central figures used to make the case that billionaires are undertaxed.
- Under the California constitution, if two competing ballot measures both pass, the measure receiving the most “yes” votes becomes law.
- A California surrogate who thought she was carrying a child for a single father admits to feeling “blindsided” after learning that the baby she was carrying allegedly belonged to a Chinese billionaire.
- Reports vary on how many children the billionaire supposedly has, but one former partner claims it to be as many as 300.
- Earlier this month, Ruffalo encouraged California Attorney General Rob Bonta and his coalition of 11 other state AGs not to settle their lawsuit against Paramount Skydance, which would effectively keep David Ellison from acquiring Warner Bros.
- The woman, identified by CBS News as “Judy” to protect her identity, said the surrogacy agency did not initially provide enough information about the intended father.
- Schiffer, chairman of family office Patriarch and CEO of Reputation Management Consultants, told FOX Business that he works with several billionaire clients, including some in California, and said many are unhappy about the proposal.
- "You're going to see some of the most brilliant, most successful men and women that have been the cornerstone of tax revenue and donational revenue and leading companies that are employing fleets of individuals and scores of individuals, they're going to say, 'No mas, I'm out. Goodbye,' because they don't feel respected or appreciated and they feel under attack," Schiffer said.