California’s proposed billionaire tax: How does it add up?

October 18, 2026 / 9:27 AM EDT / CBS News

When California voters head to the polls next month, they'll be asked whether to adopt a new proposal that calls for billionaires to be taxed like never before. Jo Ling Kent shares what Proposition 40 is all about:

"There's never been a proposal like this anywhere in the world, so it's a novel idea," said healthcare workers union leader Dave Regan. "We are facing an emergency."

An emergency that began, according to Regan, with President Trump's so-called "One Big Beautiful Bill," which includes cuts targeting federal funds to Medicaid over the next few years.

"What we're trying to do is restore $100 billion worth of health care cuts," Regan said. "Three-and-a-half million people lose health insurance. Hospitals, clinics, and emergency rooms will close." They could also cost jobs in Regan's own union, SEIU United Healthcare Workers West.

So, to bridge the gap, Regan and the union led a petition drive to put on the November ballot a one-time, 5% state tax on the net worth of California's 200 or so billionaires, known as Proposition 40.

How confident is Regan that it will pass? "Pretty confident," he replied.

Regan's tactics are…

Original source: https://www.cbsnews.com/entertainment/