Sep 9, 2026 · 28 min
California Democrats split over taxing billionaire wealth
How to tax the (really) rich
California’s Proposition 40 tests whether taxing billionaire assets can fund healthcare without driving away investment and wealthy residents.
- 1Proposition 40 would impose a one-time 5% tax on billionaire assets, directing most proceeds toward healthcare after federal cuts.
- 2Supporters target fortunes growing through untaxed stock appreciation, while opponents warn the measure could weaken investment, jobs, and innovation.
- 3The California fight could shape national wealth-tax campaigns, especially if voters reject a proposal backed by organized labor.
Don't miss
Cristobal Young challenges the assumption that millionaire tax flight is widespread while acknowledging that California’s unusually large proposal could pose distinct risks.
The brief
California’s proposed Proposition 40 would impose a one-time 5% tax on billionaire assets, with most proceeds directed toward healthcare after federal cuts.
The measure has split California Democrats, labor groups, and allied organizations: supporters see untaxed stock wealth, while critics warn of bad design and capital flight.
Silicon Valley billionaires, led by Sergey Brin, are spending heavily against Proposition 40, turning the ballot fight into a broader clash over labor and tech power.
One economist argues wealth taxes would reduce investment, jobs, and innovation; Cristobal Young counters that the tax system lets stock fortunes grow largely untaxed.
The central uncertainty is political as much as economic: a defeat in heavily Democratic California could weaken national efforts to tax the ultra-rich.
Featuring
Gavin Christopher Newsom
Donald John Trump
The Myth of Millionaire Tax FlightBooks & mentions
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