Overview
- The measure appears on the Nov. 3 ballot and would charge a one-time 5% tax on Californians with at least $1 billion in net worth.
- Backers say the levy could raise about $100 billion for healthcare, schools and food assistance while critics and analysts estimate roughly $40 billion because of valuation and avoidance uncertainties.
- Recent polls show mixed but sometimes narrow support, with an August UC Berkeley IGS poll and a September PPIC survey giving the measure modest leads in different samples.
- Billionaire opponents have spent heavily against Prop 40—Sergey Brin has contributed more than $100 million—and have backed rival ballot acts that could nullify the levy if they win more votes.
- Enforcement questions include how to value complex assets, how many wealthy residents might change residency or move assets, and whether the outcome could shape national debates about taxing ultrawealthy people.