California billionaires are significantly ramping up their efforts to defeat Proposition 40, a proposed wealth tax that targets the state's ultra-wealthy residents. High-profile figures including Google co-founder Sergey Brin, venture capitalist John Doerr, and Ripple co-founder Chris Larsen have collectively raised more than $300 million in opposition to the measure.
Larsen has taken a particularly vocal stance, contributing heavily to campaigns designed to oppose the tax and supporting separate initiatives that could potentially nullify it. The proposed wealth tax specifically targets residents who held billionaire status as of January 1, 2026, with the stated goal of allocating the majority of the proceeds toward health care funding.
Despite initial backing when it was first introduced, Proposition 40 is currently facing declining public support alongside the massive influx of opposition funding. Current market pricing and recent polling data both suggest a decreased likelihood of the wealth tax successfully passing.
What to Watch
Observers are closely monitoring several factors that could influence the final outcome of the measure:
- Upcoming public opinion polls and statements from prominent political figures, such as Governor Gavin Newsom, who opposes the measure.
- Potential shifts in support or stance from influential labor groups and major Democratic organizations.
- Any new legislative developments or potential compromise proposals that emerge in the coming weeks.
