California voters are deciding on Proposition 40, a measure that would impose a one-time 5% tax on the accumulated wealth of taxpayers worth more than $1 billion. If approved, it would apply to anyone who was a legal resident of California as of Jan. 1, 2026.
Supporters say the proposal would affect about 250 people and raise $100 billion. They say 90% of the money would restore healthcare cuts, with the other 10% directed to food assistance and public education.
Dave Regan backs Proposition 40
Dave Regan, president of SEIU United Healthcare Workers Trust, said the measure is needed so millions of people do not lose healthcare. He said, “Finally here in California, we're saying to them you have to put up a little bit of money, a one-time emergency tax, so millions of people don't lose healthcare. That does not make you a victim, that makes you a participant in a society that's made you incredibly wealthy,”
He also said, “Neither Governor Newsom nor Secretary Becerra have offered one idea to fix an imminent crisis in healthcare in California, and they all agree as to what the consequences are gonna be,”
Newsom and Xavier Becerra oppose
Gavin Newsom and Xavier Becerra are among the opponents of Proposition 40. Newsom has said the measure could lead to California losing its competitive edge and drive wealthy residents and businesses out of the state.
The proposal is being presented as a response to healthcare cuts tied to the One Big Beautiful Bill Act. Supporters say the revenue would help cover those cuts, while critics say the measure gives 90% of the revenue to one category and does not raise funds for public safety, housing and wildfire prevention.
Stuart Waldman on California
Stuart Waldman said California has a spending problem. He said, “Thirty-eight percent of our state budget comes from the top 1%. If those people moved, and some of them already have, it would have a drastic impact on our state budget. It would impact healthcare, it would impact teachers, it would impact, education,”
The vote now decides whether the tax becomes law or falls short of approval. Supporters have staked the case on the size of the healthcare cuts, while opponents have focused on the risk to the state’s tax base and future budgets.
