California Voters Reject Billionaire Tax as Organizers Eye 2028

Sponsored by Service Employees International Union-United Healthcare Workers West, Prop 40 was projected by supporters to raise tens of billions of dollars for healthcare, food assistance and public education. They argued those programs faced pressure from cuts to Medicaid, the Supplemental Nutrition Assistance Program and other services under President Donald Trump. The Associated Press reported the measure’s defeat.

The campaign opposing Prop 40, which also backed Propositions 41 and 42, drew about $378.4 million from billionaire opponents, while supporters raised $33.5 million, according to CalMatters. Google co-founder Sergey Brin contributed more than $100 million to a committee he set up to defeat the tax. SEIU-UHW president Dan Regan told CalMatters the spending was “incredibly corrosive and corrupting” to democracy and the political system.

The proposal had initially polled at 55% support and won endorsements from Sen. Bernie Sanders, Rep. Ro Khanna and former U.S. Labor Secretary Robert Reich. But Gov. Gavin Newsom, Gov.-elect Xavier Becerra, mayors of most major cities, the state NAACP, California Teachers Association and Planned Parenthood Affiliates of California opposed it. Most major state newspapers also recommended a no vote, with the Sacramento Bee a notable exception.

Supporters said opponents’ advertising misrepresented the measure, which would have affected about 200 people. One AI-generated ad depicted bureaucrats taking household belongings and warned that every Californian would have to disclose assets or face a 40% penalty. Morris Pearl, chair of Patriotic Millionaires, said the campaign had prompted wider discussion of inequality and voter opposition to the economic status quo. Regan said a renewed effort in 2028 was “our plan.” San Francisco organizer Nadia Rahman also called for a national billionaire tax, urging voters to press the new 2027 Congress to act.