---
title: "Proposition 40 Wealth Tax Rejected by California Voters"
url: https://newscentral.site/proposition-40-wealth-tax-rejected-by-california-voters/
language: en
publisher: "News Central Site"
section: "Politics"
published: 2026-11-10T03:23:16.000Z
updated: 2026-11-10T12:23:13.344Z
id: 569cb605-2630-40f5-b5d1-2002668beda2
source: "CBS News Politics https://www.cbsnews.com/news/california-proposition-40-billionaire-wealth-tax-rejected-cbs-projects/"
attribution: "Link to https://newscentral.site/proposition-40-wealth-tax-rejected-by-california-voters/ and name News Central Site when you quote or summarize this story."
---

# Proposition 40 Wealth Tax Rejected by California Voters

California voters have rejected a proposed wealth tax on billionaires, with CBS News projecting that Proposition 40 will not pass. This measure would have imposed a one-time 5% levy on Californians with a net worth of $1 billion or more, excluding real estate and certain retirement assets.

The expected revenue from the tax was estimated to be around $100 billion over five years, with a significant portion earmarked for healthcare programs. Approximately 90% of the funds were intended for healthcare initiatives, while the remaining 10% would have been allocated towards education, food assistance, and administrative costs related to the tax.

The proposed wealth tax sparked intense debate about economic inequality and the influence of billionaires in politics. The vote on Proposition 40 is seen as a significant moment in this broader conversation, particularly as other states and federal policymakers consider similar measures to address extreme wealth and fund public services.

The proposed wealth tax on California's billionaires was met with opposition from some unexpected quarters, including Governor Gavin Newsom. While typically aligned with Democratic priorities, Newsom joined forces with former Representative Porter to express concerns about the measure.

Newsom and Porter argue that a state-level wealth tax would prompt wealthy residents to flee California, thereby reducing its tax revenue and damaging the state's long-term fiscal position. This concern is particularly pertinent given the significant contributions of billionaires to the state's economy through their businesses and investments.

The principal sponsor of the measure, SEIU Healthcare Workers West, a labor union, supported the initiative alongside the California Democratic Party. However, this rare instance of division within the party highlights the complexities surrounding wealth taxes and their potential impact on both individuals and states.

The campaign against Proposition 40, also known as the billionaire wealth tax, was heavily funded by wealthy opponents who contributed tens of millions of dollars to defeat it. A significant portion of this money went towards supporting Building a Better California, which has amassed over $250 million in funds opposing the measure by October 28.

In addition to funding efforts against Proposition 40, some of these wealthy donors also supported two competing measures: Propositions 41 and 42. These proposals would place limits on special taxes and could potentially prevent the billionaire tax from taking effect if either receives more votes than Proposition 40.

California voters have rejected a proposed wealth tax on billionaires, according to projections by news outlets. This outcome is seen as a significant blow to proponents of such taxes, who had argued that they would help address income inequality.

The rejection of Proposition 40 comes after several high-profile billionaires publicly endorsed the measure, with some expressing support for the idea of paying higher taxes on their vast fortunes. Huang, one such billionaire, stated in an interview that he is "okay" with paying more taxes, citing a sense of fairness and responsibility to contribute to society.

---
Source: [CBS News Politics](https://www.cbsnews.com/news/california-proposition-40-billionaire-wealth-tax-rejected-cbs-projects/)  
Published by News Central Site: https://newscentral.site/proposition-40-wealth-tax-rejected-by-california-voters/