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WSJ: How the Proposed California Billionaire Tax Became a ‘Hot Mess’ for Democrats

Supporters say the measure would raise about $100 billion for Medi-Cal and other services, while opponents warn wealthy residents may leave California.

  • On November 3, California voters will decide whether to adopt Proposition 40, a ballot measure imposing a one-time 5% tax on the net worth of roughly 200 billionaires.
  • Backers designed the measure to generate up to $100 billion to offset federal healthcare funding cuts, with SEIU United Healthcare Workers West president Dave Regan warning cuts could leave nearly 3 million Californians without insurance.
  • Opponents, including Google co-founder Sergey Brin, have raised more than $300 million to defeat the measure while backing Propositions 41 and 42, which could nullify the tax if they receive more votes.
  • The campaign has divided Democrats, with Governor Gavin Newsom calling Proposition 40 "a flawed initiative," while Senator Bernie Sanders champions it as the "most important ballot initiative in the country."
  • A Hoover Institution study projects California could lose $25 billion due to billionaire flight, though supporters argue the tax could establish a national model for funding essential public services.
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In the world of technology and business, Palmer Luckey stands out as a prominent billionaire. But amid economic and political pressures, Luckey faces new tax challenges in California. Billionaire Palmer Luckey will not leave California due to the wealth tax. Luckey has been a billionaire in California since he was 21 years old, when he sold his first company, virtual reality headset maker Oculus VR, to Facebook for $2 billion in 2014. His curren…

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Mission Local broke the news on Thursday, October 8, 2026.
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