California Billionaire Wealth Tax Projected to Fail as Voters Reject Proposition 40

California voters are projected to reject Proposition 40, a proposed one-time 5% tax on billionaires’ wealth, Decision Desk HQ projected.

The measure would have applied to individuals with assets exceeding $1 billion who were California residents at the start of 2026.

Revenue Would Have Funded Healthcare

Under the proposal, 90% of the revenue would have supported healthcare services. The remaining 10% was earmarked for food assistance and education-related programs.

California’s nonpartisan Legislative Analyst’s Office estimated that the tax could generate tens of billions of dollars over several years.

The proposal was backed by the healthcare workers’ union SEIU United Healthcare Workers West. Opponents argued that it could drive wealthy residents out of California and reduce future state revenue.