IMPOSES ONE-TIME TAX ON CERTAIN TAXPAYERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

Key points

• 1Applies to billionaires who were California residents on January 1, 2026; the tax is due in 2027, with an option to spread payments over five years at a higher total cost.
• 290% of revenue must be spent on health care; 10% on food assistance or education-related programs (including tax administration), and revenue may not replace existing funding for these purposes.
• 3Revenues are exempt from constitutional requirements for school funding, budget reserves, and the state spending limit.
• 4Legislative Analyst estimates a temporary revenue increase of tens of billions of dollars over several years, and a possible ongoing decrease of less than $1 billion per year in state income tax revenue from billionaires.
• 5State administration costs could be tens of millions of dollars per year for several years, paid from the new tax revenues.

Cost to taxpayers

Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires.

What each side says

Supporters

YES ON PROP. 40 TO TAX BILLIONAIRES Trump’s “Big, Ugly Bill” slashed funding for healthcare in California to pay for more billionaire tax breaks, eliminating coverage for over a million Californians and doubling health insurance premiums for millions more. Vote YES on Prop. 40 to make billionaires finally pay their fair share in taxes and stop sticking the middle class with the bill. FUND HEALTHCARE, NOT BILLIONAIRE TAX BREAKS Prop. 40 makes approximately 200 California billionaires pay a modest, one-time tax on their global wealth to keep local hospitals and ERs open and healthcare affordable for millions of Californians. It will raise about $100 billion to replace the funding Trump and his billionaire donors took from working people to line their pockets. The funds will go to life-saving medical care for seniors, veterans, and families. It will allow millions of Californians to keep their health insurance and not see their premiums skyrocket. It will prevent mass teacher layoffs in our public schools and keep children fed through food assistance programs. BILLIONAIRES SHOULD PAY THEIR FAIR SHARE You pay your taxes out of every paycheck, but billionaires pay much lower rates than working families. They insist on paying less, even as they get bigger and bigger tax breaks. Prop. 40 enacts a one-time tax paid ONLY by Californians worth more than $1 billion, a small group of people who together hold $2 trillion in wealth—most of which will never be taxed due to loopholes that favor the ultra-wealthy. Billionaires amassed their extreme wealth on the backs of the middle class, and we have a chance to make them pay their fair share so WE aren’t stuck paying more for healthcare. BERNIE SANDERS SUPPORTS PROP. 40 U.S. Senator Bernie Sanders strongly supports voting YES on Prop. 40, even if some politicians in Sacramento are protecting billionaires over working people. “The idea that [billionaires] are saying it’s ok for children to die, for people not to get the healthcare they need, that they’re going to punish the people of California—it’s outrageous.” —U.S. Senator Bernie Sanders. DON’T BELIEVE THE BILLIONAIRES’ LIES A small group of morally bankrupt billionaires is spreading lies about Prop. 40, because they want working people to foot the bill for their tax breaks. Google founder and Trump donor Sergey Brin’s wealth has DOUBLED to nearly $300 billion since Trump’s election. Now he’s spent over $57 million to oppose Prop. 40. He’d rather millions of Californians lose healthcare than pay his fair share in taxes. Billionaires like Brin have bought and paid for some corrupt politicians and organizational leaders to also oppose Prop. 40—but actual teachers, Planned Parenthood workers, nurses, and union members support it. Those opposing Prop. 40 have not put forth any viable solution to replacing the funding Trump took from us. Of course these billionaires and their puppets don’t want a billionaire tax, but you should—because someone has to pay, and working people are already paying enough for healthcare. SAVE LIVES. TAX BILLIONAIRES. Suzanne Jimenez , Chief of Staff SEIU-United Healthcare Workers West Victoria Barron , Patient Access Specialist Planned Parenthood of Pacific Southwest Denise Robb , Ph.D., Member of American Federation of Teachers Local 1521 Los Angeles College Faculty Guild

Opponents

No on 40—FLAWED WEALTH TAX “EXPERIMENT” HURTS ALL CALIFORNIANS Prop. 40 is a poorly designed tax scheme that will damage our economy and cost our state budget billions of dollars—without doing anything to lower healthcare costs for Californians. This measure is a one-time tax that only provides temporary funds. When the money runs out, the politicians will be back with yet another tax. PROP. 40 WILL COST CALIFORNIA $25 BILLION IN LOST REVENUE FOR HEALTHCARE, EDUCATION A study by Stanford University economists found the tax will cost California $25 billion as the tax drives companies and wealthy residents out-of-state. These residents create new businesses, drive our economic growth and already pay nearly half the income taxes that fund state programs. If they leave, it will create a huge hole in our budget, threatening core services like education, healthcare and public safety or forcing other taxpayers to make up the difference. California’s DOCTORS, HOSPITALS AND CLINICS OPPOSE PROP. 40 because the lost funding will endanger patients’ access to healthcare. “Prop. 40 doesn’t help the need for stable healthcare funding. Prop. 40 makes it worse.”—Jodi Hicks, President and CEO, Planned Parenthood Affiliates of California PROP. 40 IS WRITTEN TO GIVE POLITICIANS NEW POWER TO EXPAND THE TAX Prop. 40 isn’t just a “billionaire tax.” The special interests behind the measure wrote it to give the State Legislature power to amend the measure—without voter approval. Independent legal analysis found Prop. 40 opens the door to expanding the tax to the assets of ALL Californians—to your savings, home equity and even retirement funds. www.ReadltForYourself.org PROP. 40 TAXES RETIREMENT ACCOUNTS FOR THE FIRST TIME Prop. 40 would be the first in California history to tax retirement accounts—a dangerous precedent. If it passes, it will inevitably be expanded to tax more Californians’ retirement savings. PROP. 40 IS A RECIPE FOR MORE WASTEFUL SPENDING State government spending is up 79% since 2019, without delivering better results on key issues like crime, housing and homelessness. But Prop. 40 includes no accountability, transparency or oversight provisions to ensure funds are spent as intended. Instead, Prop. 40: • Exempts itself from voter-approved constitutional protections for schools, shortchanging classrooms over $3 billion annually. www.ProtectCaliforniaSchools.org • Exempts itself from the voter-approved state spending limit, including its requirement that excess revenues get returned to taxpayers. • Includes no safeguards to prevent billions from going directly to health insurance companies and CEOs. AUTHORS ADMIT THE ONE-TIME TAX IS AN EXPERIMENT The French economists who co-authored Prop. 40 have unsuccessfully proposed wealth taxes in France and the European Union that were rejected due to economic concerns. They call Prop. 40 “an experiment” that may backfire but say “California is the ideal place to test their idea.” We shouldn’t risk California’s future on a costly economic experiment. www.WhoWroteProp40.org PROP. 40 IS OPPOSED BY LABOR AND BUSINESS, DEMOCRATS AND REPUBLICANS, TEACHERS AND FIREFIGHTERS Prop. 40 is opposed by Governor Gavin Newsom, the Democratic and Republican candidates for governor, and the following organizations: California Teachers Association, Planned Parenthood Affiliates of California, California Children’s Hospital Association, State Building and Construction Trades Council of California, California Conference of Carpenters, California Professional Firefighters, California Asian Pacific Chamber of Commerce, California Council for Affordable Housing, California Taxpayers Association, California Chamber of Commerce, California Hispanic Chambers of Commerce Join us and vote no on this flawed tax scheme. Visit www.VoteNoOn40.org for more information. René Bravo , M.D., President California Medical Association Francisco Silva , CEO California Primary Care Association Dr. Debra Schade , President California School Boards Association