Are California voters about to impose 'world's first' tax on billionaires?

What the report says

California voters are weighing Proposition 40, a ballot measure that would impose a one-time 5% tax on the net worth of the state’s billionaires, according to BBC World News. The proposal is aimed at raising about $100bn to help cover healthcare spending and offset federal funding cuts, and it would apply to people with net worths of at least $1bn who lived in California as of 1 January 2026.

The BBC says the measure has split political and business leaders in a state that has one of the country’s highest concentrations of billionaires, alongside major wealth inequality and a large homeless population. Supporters, including some unions and a few billionaires such as Nvidia chief executive Jensen Huang, argue the tax is a short-term way to protect healthcare services and ensure the ultra-wealthy contribute more. Critics, including Governor Gavin Newsom, say it could push rich residents and their tax revenue out of California.

The article notes that several prominent figures, including Google co-founders Larry Page and Sergey Brin and former Uber chief Travis Kalanick, have reportedly left the state or considered leaving ahead of the possible tax. A recent poll cited by the BBC showed the measure short of majority support, with a sizable undecided share, meaning approval is not assured.

If passed, California would become the first place to adopt a wealth tax focused specifically on billionaires. Similar debates are also playing out elsewhere in the US, but wealth taxes remain rare globally.