California voters reject one-time 5% billionaire tax that split Democrats

California voters have rejected Proposition 40, a one-time 5% tax on most of the wealth of the state's billionaires, according to race calls by The Associated Press, CBS News and NBC News ¹²³. The measure had divided Democrats in a state where they heavily outnumber Republicans ¹.

Backers said the tax could raise $100 billion for health care. The union SEIU-UHW, which represents health care workers, led the campaign ¹. Supporters argued that the Republican-controlled Congress cut health programs to give tax breaks to the wealthy, so wealthy Californians should fill the gap ¹.

On tapeThe Wall Street Journal · Nov 3

▶1:21

What the measure would have done

NBC reports the tax would have applied to residents worth more than $1.1 billion, with a smaller, phased-in tax for those worth between $1 billion and $1.1 billion. It would have applied to anyone living in California as of Jan. 1, 2026 ³. CBS reports it excluded real estate and certain retirement assets ².

Supporters said 90% of the money would go to health care. The rest would go to education, food assistance and running the tax ². Supporters also said it would help offset federal health cuts under H.R. 1, the 2025 law known as the "One Big Beautiful Bill Act," and protect Medi-Cal, California's Medicaid program ².

From Channel GOPBernie Sanders after Democrats win CongressBernie Sanders · 146 plays · captioned, with the source named

Democrats on both sides

The California Democratic Party backed the tax, as did Rep. Ro Khanna and Sen. Bernie Sanders, who campaigned in the state ¹³. Gov. Gavin Newsom and Xavier Becerra, the Democratic candidate for governor, opposed it ¹. Newsom said a national tax on the wealthy would be better ¹.

Opponents also included former Rep. Katie Porter and the California Teachers Association and California Medical Association ². They argued the tax would push wealthy residents out of the state and cut its revenue ¹². Some progressives who favor higher taxes on the rich opposed it because it was a one-time tax that mainly helped one area, health care ³.

On tapeCNN · Nov 1

▶1:18

The money gap

NPR reports that at least five times as much was spent against the measure as for it ¹. NBC, citing the ad-tracking firm AdImpact, says opponents outspent supporters 250 to 1 on ads in late October ³. CBS reports that the main opposition group, Building a Better California, had raised over $250 million as of Oct. 28 ².

Opponents also put Propositions 41 and 42 on the ballot. Either could have blocked the tax by getting one more vote than Prop. 40, even if Prop. 40 passed ²³.

Economists disagreed about the tax. A Stanford study said billionaires who had already left, including Sergey Brin, Larry Page and Peter Thiel, removed about 30% of the state's billionaire wealth from taxation, and that the tax might raise only about $30 billion ². Other economists, including Nobel winners Daron Acemoglu and Joseph Stiglitz, backed it ².

I don't mind paying taxes; the more you make, the more taxes you pay, so I'm okay with that

That matters because the question is not going away. Democrats are arguing over how to pay for health care and other costs after federal cuts, and California was treated as a test case ²³. The vote suggests that a wealth tax with a divided Democratic Party behind it, and a flood of opposition money, is a hard sell even in a deep-blue state.

The Record

1. Jan 1, 2026Prop. 40 would have applied its one-time tax to anyone living in California as of this date ³.
2. Oct 28, 2026The main opposition group, Building a Better California, had raised over $250 million against the tax ².
3. Nov 10, 2026AP, CBS News and NBC News report that California voters rejected Prop. 40 ¹²³.

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<h2>California voters reject one-time 5% billionaire tax that split Democrats</h2> <p><em>By The GOP Files Campaign Desk. This article first appeared on <a href="https://thegopfiles.com/story/california-voters-reject-one-time-5-billionaire-tax-that-split-democrats">The GOP Files</a> on Monday, November 9, 2026.</em></p> <p>California voters have rejected Proposition 40, a one-time 5% tax on most of the wealth of the state&#39;s billionaires, according to race calls by The Associated Press, CBS News and NBC News . The measure had divided Democrats in a state where they heavily outnumber Republicans .</p> <p>Backers said the tax could raise $100 billion for health care. The union SEIU-UHW, which represents health care workers, led the campaign . Supporters argued that the Republican-controlled Congress cut health programs to give tax breaks to the wealthy, so wealthy Californians should fill the gap .</p> <h2>What the measure would have done</h2> <p>NBC reports the tax would have applied to residents worth more than $1.1 billion, with a smaller, phased-in tax for those worth between $1 billion and $1.1 billion. It would have applied to anyone living in California as of Jan. 1, 2026 . CBS reports it excluded real estate and certain retirement assets .</p> <p>Supporters said 90% of the money would go to health care. The rest would go to education, food assistance and running the tax . Supporters also said it would help offset federal health cuts under H.R. 1, the 2025 law known as the &quot;One Big Beautiful Bill Act,&quot; and protect Medi-Cal, California&#39;s Medicaid program .</p> <h2>Democrats on both sides</h2> <p>The California Democratic Party backed the tax, as did Rep. Ro Khanna and Sen. Bernie Sanders, who campaigned in the state . Gov. Gavin Newsom and Xavier Becerra, the Democratic candidate for governor, opposed it . Newsom said a national tax on the wealthy would be better .</p> <p>Opponents also included former Rep. Katie Porter and the California Teachers Association and California Medical Association . They argued the tax would push wealthy residents out of the state and cut its revenue . Some progressives who favor higher taxes on the rich opposed it because it was a one-time tax that mainly helped one area, health care .</p> <h2>The money gap</h2> <p>NPR reports that at least five times as much was spent against the measure as for it . NBC, citing the ad-tracking firm AdImpact, says opponents outspent supporters 250 to 1 on ads in late October . CBS reports that the main opposition group, Building a Better California, had raised over $250 million as of Oct. 28 .</p> <p>Opponents also put Propositions 41 and 42 on the ballot. Either could have blocked the tax by getting one more vote than Prop. 40, even if Prop. 40 passed .</p> <p>Economists disagreed about the tax. A Stanford study said billionaires who had already left, including Sergey Brin, Larry Page and Peter Thiel, removed about 30% of the state&#39;s billionaire wealth from taxation, and that the tax might raise only about $30 billion . Other economists, including Nobel winners Daron Acemoglu and Joseph Stiglitz, backed it .</p> <blockquote><p>I don&#39;t mind paying taxes; the more you make, the more taxes you pay, so I&#39;m okay with that</p><p>&mdash; Jensen Huang, Nvidia CEO and a California billionaire who supported Prop. 40</p></blockquote> <p>That matters because the question is not going away. Democrats are arguing over how to pay for health care and other costs after federal cuts, and California was treated as a test case . The vote suggests that a wealth tax with a divided Democratic Party behind it, and a flood of opposition money, is a hard sell even in a deep-blue state.</p> <p><em>Read the original, with every source linked, at <a href="https://thegopfiles.com/story/california-voters-reject-one-time-5-billionaire-tax-that-split-democrats">thegopfiles.com</a>. Republished under The GOP Files' <a href="https://thegopfiles.com/republish">free republishing terms</a>.</em></p> <img src="https://thegopfiles.com/api/rp/california-voters-reject-one-time-5-billionaire-tax-that-split-democrats.gif" alt="" width="1" height="1" style="border:0;width:1px;height:1px">

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Sources

1. NPR, “California voters defeat billionaire tax proposal that divided Democrats” (2026-11-10). npr.org/2026/11/09/g-s1-151625/california-billionaire-tax-re
2. CBS News, “California voters reject billionaire wealth tax, CBS News projects” (2026-11-10). cbsnews.com/news/california-proposition-40-billionaire-wealt
3. NBC News, “California voters reject new tax on billionaires in a blow to the left” (2026-11-10). nbcnews.com/politics/2026-election/california-reject-billion

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