Are California voters about to impose 'world's first' tax on billionaires?
Image source, ReutersBySareen HabeshianLos AngelesPublished24 October 2026Few places on the planet have as many ultra-wealthy residents as California, a US state known for glamour, coastal mega-mansions, and being home to the rich and famous. Now voters are about to decide whether the mega-rich among them - including media mogul Oprah Winfrey, Meta head Mark Zuckerberg, Skims cofounder and reality television star Kim Kardashian, and filmmaker George Lucas - should hand over billions of dollars to pay for improvements to healthcare. Proposition 40 is aimed at levying a one-time 5% tax on the net worth of all of California's billionaires. There are a little more than 200 such individuals in the state - but that hasn't stopped the measure from dividing leaders and causing some of its ultra-wealthy residents to flee. One billionaire businessman says he's brought jobs to California, but the proposition made him feel "a little bit like I wasn't wanted". But the vote is also offering regular residents a voice on an issue that has roiled politics for decades. "I believe this is the first billionaire tax - meaning a wealth tax that is targeting a very extreme percentile of the wealth distribution," says Francesco Trebbi, a public policy professor at the University of California, Berkeley. He noted the measure's historic nature and how it could help even out California's wealth gap. The state has the largest economy in the country and boasts the fourth largest global economy, bigger than India and the UK. And it is home to one of the highest concentrations of billionaires in the world. But it also has the largest share of homeless people in the nation and one of the highest wealth gaps. Those who back the measure have argued it helps ensure that the ultra-wealthy are contributing their fair share and will help backfill gaps in the state's budget. The move aims to raise $100bn (£75bn) to make up for federal funding cuts to the state's health-care system. Suzanne Jimenez, chief of staff for Service Employees International Union-United Healthcare Workers West, which helped lead the charge for the initiative, says the measure is a "short-term solution" for massive federal funding cuts coming to California as a result of US President Donald Trump's sweeping tax and spending bill. "If we do nothing, we're going to see a collapse of our healthcare system, while we figure out a longer-term solution to fund our healthcare," she tells the BBC. Image source, Getty ImagesWhile the ballot measure has many supporters - including some billionaires like Nvidia CEO Jensen Huang - it has faced fierce opposition from a variety of figures, from billionaires to the state's liberal governor. Google co-founder Sergey Brin has given more than $100m to a political organisation funding ballot measures that could block the wealth tax, the Los Angeles Times reports, external.