California billionaire tax proposal faces fierce opposition ahead of 2026 ballot

Photo: Gonzalo Facello / Pexels A proposed one-time tax on billionaires in California has sparked significant debate as Proposition 40 heads to the ballot on November 3, 2026. The measure, backed by SEIU United Healthcare Workers West, aims to levy a 5% tax on net worths exceeding $1 billion, with proceeds earmarked for healthcare. However, two counterpropositions, Propositions 41 and 42, could block it if they receive more support. The proposal has prompted intense campaign spending, with over $351 million already invested, predominantly to defeat the tax. Current prediction markets reflect a 22.5% likelihood of the tax passing, suggesting skepticism about its success amid strong opposition. Key Takeaways The proposal appears to be encountering significant resistance, with 90% of campaign funds aimed at defeating it, suggesting the tax may face challenges in passing. Market pricing implies a 22.5% chance of the measure passing, reflecting uncertainty and potential influence from well-funded opposition campaigns. The presence of counterpropositions that could block Proposition 40 indicates a complex path to approval, dependent on multiple ballot outcomes. What to Watch Watch for de...