California voters head to the polls this November to decide on Proposition 40, a landmark initiative that would impose a one-time, 5% state tax on the net worth of the state’s approximately 200 billionaires. If passed, the measure is expected to generate $100 billion in revenue over five years, with 90% of those funds designated for healthcare services. They’ll be asked whether to adopt a new proposal that calls for billionaires to be taxed like never before, when California voters head to the polls next month. Jo Ling Kent shares what Proposition 40 is all about. To start companies here. …, we want billionaires to create jobs here. We can no longer tax them, when somebody leaves California. California is America’s coming attraction. According to no billionaires contacted by “Sunday Morning” wanted to talk to us about Prop 40 … except for one. “I don’t mind paying taxes; the more you make, the more taxes you pay, so I’m okay with that,”, Jensen Huang, the fo. Today, Forbes lists his net worth at about $200 billion, making him the seventh richest person in the world. I am the ultimate American dream,” Huang said. “If not for this country, the education, the ability to create a new company, pursue your dreams, I wouldn’t have met all the people that made Nvidia possible. I love this country in every possible way. According to whether you’re poor or rich, for or against the billionaire tax, its architect, Dave Regan, is already looking beyond November – and beyond California. “Other, Around the country are going to start looking to follow California’s lead, just like it’s happened so many times in the past,” he said. “California is America’s coming attraction, and this is coming to a state near you after we pass it on November 3.
The proposal was driven by a petition effort led by Dave Regan, president of the SEIU United Healthcare Workers West union. Regan describes the tax as a necessary response to an emergency, pointing specifically to federal Medicaid funding cuts included in what he termed President Trump’s “One Big Beautiful Bill.” According to Regan, these cuts threaten to strip health insurance from 3.5 million people and force the closure of various hospitals and clinics. How confident is Regan that it will pass? “Pretty confident,” he replied. Ask the three-and-a-half million people who are going to lose healthcare coverage.
Regan argues the tax offers a critical five-year bridge to stabilize healthcare access while allowing the state time to develop a permanent funding solution. He remains optimistic about the initiative’s prospects, suggesting that California’s move could serve as a national model for other states to emulate.
However, the measure faces significant opposition from an unlikely coalition of billionaires, major unions, and prominent Democratic politicians. California Governor Gavin Newsom has labeled the initiative a “flawed” effort, while former Democratic Congresswoman Katie Porter expressed concerns that the policy could drive the ultra-wealthy out of the state, permanently eroding the tax base. I generally, as a progressive, have fought to make sure that the ultra-wealthy pay more,” Porter said. “But this tax doesn’t do that correctly, causing these people to pick up and to leave. It is much harder to get tax base back than it is to grow it in the first place.
Critics also highlight that the initiative faces two competing measures on the ballot—Propositions 41 and 42—backed by opposition groups. Should either of those measures receive more votes than Proposition 40, it would effectively nullify the wealth tax entirely. A “Yes” voter told us, “To me, it’s bigger than Prop 40.
Several billionaires have already departed California, including Google co-founders Larry Page and Sergey Brin, as well as venture capitalist Peter Thiel. Reports indicate that Brin has committed over $100 million to defeat the measure.
The debate touches on broader frustrations with current tax structures. Boston College Law professor Ray Madoff noted that the existing system often allows the ultra-wealthy to avoid taxes by holding their wealth primarily in stocks, which remain untaxed until sold. Madoff argued that while Proposition 40 is a temporary measure, it holds symbolic value by highlighting a system she believes is “deeply broken” and in need of federal reform. According to madoff, Prop 40 spotlights a “deeply broken” tax system, and believes it can be beneficial. “My feelings about Prop 40 are that meaningful change has to happen at the federal level,” she said. “And I think that to th. On its own, it obviously can’t do anything; it’s just patching a temporary hole, right.
Public opinion appears divided as the election approaches. Supporters view the tax as a necessary stand against the Trump administration, while opponents express deep concern over potential capital flight and its economic consequences. You don’t get a second bite at tax policy,” she continued. “A tax that you pass has enduring consequences.
Among those weighing in is Jensen Huang, founder and CEO of the chipmaker Nvidia.
While acknowledging a dislike for wasted tax dollars, Huang expressed a willingness to pay his share, even noting that his own potential liability could reach $8 billion over the five-year period.
Reflecting on his journey from a dishwasher at Denny’s to becoming one of the world’s wealthiest individuals, Huang maintained his support for the country, stating that the ability to pay such taxes is a privilege.
As voters prepare to cast their ballots on November 3, the initiative remains a flashpoint in a larger national conversation about wealth inequality, the limits of state-level tax authority, and the role of the ultra-wealthy in funding public infrastructure.
