Key facts
- Proposition 40, a proposed one-time 5% tax on billionaires' assets in California, has 48% support among likely voters.
- Proposition 41, which would require audits of state spending and invalidate the wealth tax, has 51% support.
- Proposition 42, which bars taxes on financial assets like stocks, has 54% support.
- Billionaire Sergey Brin has spent over $100 million opposing Proposition 40.
- The wealth tax is projected to raise approximately $100 billion over five years, primarily for healthcare.
- Support for Proposition 40 is divided along partisan lines, with strong backing from Democrats and opposition from Republicans.
A proposed one-time 5% tax on the wealth of California billionaires, known as Proposition 40, is narrowly leading in recent polls ahead of the November election. However, its passage is uncertain as two competing ballot measures designed to nullify it also show significant voter support. According to a UC Berkeley Institute of Governmental Studies (IGS) poll released August 14, 48% of likely voters support Proposition 40, while 41% oppose it. The measure, driven by the SEIU-United Healthcare Workers West union, aims to raise approximately $100 billion over five years, primarily for healthcare, with remaining funds for food assistance and education. Supporters argue it is necessary to fund essential services and counter tax cuts that benefited the wealthy. The measure has divided top Democrats, with Governor Gavin Newsom and gubernatorial candidate Xavier Becerra opposing it, citing concerns about billionaires leaving the state, while the California Democratic Party officially endorses it. Billionaire Sergey Brin, co-founder of Google, has spent over $100 million on ads against Proposition 40 and is backing two other measures, Proposition 41 and Proposition 42, intended to void the wealth tax. Proposition 41, which would require audits of state spending and invalidate the wealth tax due to its allocation method, has 51% support, while Proposition 42, which bars taxes on financial assets, has 54% support. Under California law, if two conflicting measures pass, the one with more votes takes effect. Polling indicates strong partisan divides on Proposition 40, with Democrats and liberals largely in favor and Republicans and conservatives opposed. Younger voters also show a higher likelihood of supporting the measure.