More Than $351 Million Poured Into California Wealth Tax Fight: One of the State's Costliest Campaigns Heads to Voters on November 3

More than $351 million in political donations has been poured into the high-stakes campaign over a proposed wealth tax on California's November ballot, making it one of the most costly campaigns in California history, the Los Angeles Times reported on October 24. At the center of the fight is Proposition 40, which would levy a one-time 5 percent tax on the wealth of California residents whose net worth exceeds $1 billion.

Proposition 40 is backed by the healthcare workers' union SEIU. Under the measure's text and professional summaries of it, the tax would apply to individuals who lived in California as of January 1, 2026 and meet the $1 billion net-worth threshold, with net worth measured as of December 31, 2026. The tax could be paid with the 2026 state income tax return or in five equal annual installments, with a nondeductible 7.5 percent annual deferral charge on amounts paid beyond the first year. If approved, it would be the first tax of its kind on billionaire wealth in the United States. Supporters say most of the revenue would go toward healthcare and other public spending.

The opposition has organized on a far larger scale than the measure's supporters. According to summaries of public campaign finance filings, the anti-wealth-tax committee Building a Better California has raised about $296.6 million and spent about $276.6 million, including $45 million that came in during the week of October 4 alone. The opposition also placed two competing measures on the same ballot, Propositions 41 and 42. Under California ballot rules, competing measures can coexist, and the one receiving more yes votes prevails. Governor Gavin Newsom has publicly opposed Proposition 40 and supports Proposition 42, which would amend the state constitution to permanently bar California from enacting a wealth tax, as GSM has previously reported. Opponents say the tax could push wealthy residents and their tax revenue out of California; supporters present it as a way to close healthcare funding gaps.

California voters will decide Propositions 40, 41 and 42, along with other statewide measures, on November 3. Campaign finance filings continue to be updated, and the $351 million total reported by the Los Angeles Times reflects the latest filings and may rise further.

Related:

Newsom Backs Proposition 42: A Bid Not Only to Block the Billionaire Tax but to Ban a California Wealth Tax in the Constitution

Source: GSM · USA (original Chinese edition)

Photo: 位于 Sacramento 的加州议会大厦黄昏实景（资料图）。照片：Dllu，CC BY-SA 4.0。 / The California State Capitol in Sacramento at dusk (file photo). Photo: Dllu, CC BY-SA 4.0.

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