'Vote YES on Prop 40': California Billionaire Tax Opposed by Newsom Gets Ballot Name

It's official: The proposed California Billionaire Tax Act, which last week was certified for November's election, has a ballot designation—Proposition 40.

"The people of California now have the opportunity to decide what kind of future they want,” Service Employees International Union-United Healthcare Workers West (SEIU-UHW) vice president Debru Carthan said on Thursday.

“Proposition 40 asks a simple question: At a time when hospitals are reducing services, working families are being squeezed, and essential services are under attack, should a few hundred billionaires contribute their fair share to protect the state that helped make their extraordinary wealth possible?" Carthan asked. "We believe Californians will answer with a resounding yes."

Drafted by SEIU-UHW, Prop 40 would impose a one-time 5% levy on people worth $1 billion or more, to be paid in annual installments of 1% over five years.

The bil would require the state to spend 90% of revenue from the tax on healthcare and the rest on food assistance and public education. Proponents say the tax would raise roughly $100 billion in revenue. Critics argue that it could drive wealthy residents and investment from California and stall economic growth.

Prop 40 supporters include the Teamsters union and progressive groups like the California Democratic Socialists of America (DSA) and Our Revolution, as well as individual progressives like Sen. Bernie Sanders (I-Vt.), Rep. Ro Khanna (D-Calif.), and Democratic congressional candidate Connie Chan, who is running to replace retiring longtime San Francisco Congresswoman Nancy Pelosi.

The measure is opposed by Republicans, business groups, the Democratic Party, and even some progressives, including Chan's opponent, state Sen. Scott Wiener (D-11).

Prop 40's most prominent Democratic opponent is California Gov. Gavin Newsom, whom critics accuse of trying to bamboozle voters with his recently unveiled plan for a national billionaire income tax. Some observers skeptical of the presumed 2028 presidential hopeful contend that his support for an income tax is rooted in knowledge that very rich people actually have relatively little income when compared with their investments and other assets.

Some progressive groups opposing Prop 40—including the California Teachers Association (CTA) and Planned Parenthood Affiliates of California—point out that it is a one-off tax on wealth, not income. CTA is backing a separate ballot measure, the Children’s Education and Health Care Protection Act, which would permanently extend Proposition 55, California’s existing high-income-earner tax, which is set to expire in 2030.

In response to Thursday's ballot designation, Billionaire Tax Now said in a statement that "the measure qualified for the ballot after supporters submitted more than 1.6 million signatures from Californians across the state—nearly twice the number required to qualify—making it one of the strongest citizen-led ballot qualification efforts in California history."

"Voters consistently support the billionaire tax by large, double-digit margins," the coalition continued. "For healthcare workers who have dedicated their lives to caring for patients, today’s news isn’t just welcome, it’s critical. With no other viable alternatives proposed by Gov. Newsom, the billionaire tax is the only available option to stop a cascade of hospital and clinic closures spurred by massive federal cuts in HR 1, known as President [Donald] Trump’s so-called 'Big, Beautiful Bill.'"

"In November," Billionaire Tax Now added, "California voters will at last have a chance to make billionaires pay their fair share to help prevent widespread hospital closures, through a commonsense ballot initiative that places a one-time 5% tax on the wealth of approximately 200 billionaires who reside in the Golden State."