California voters reject Prop. 40 billionaire wealth tax, CBS News projects

Updated on: November 10, 2026 / 4:38 AM PST / CBS San Francisco

Voters in California have rejected a tax on the state's wealthiest residents, CBS News projects, following a campaign that has split traditional allies and shattered spending records for a tax-related measure in California.

Proposition 40 would have levied a one-time 5% tax on California residents with a net worth of $1 billion, excluding real estate and certain retirement assets. Proponents of the measure said it was expected to generate $100 billion over five years, with 90% going toward healthcare programs and the other 10% for education, food assistance, and administration of the tax.

The proposal came at a time when other states and federal policymakers are debating how to tax extreme wealth and finance public services, and how Proposition 40 was viewed as a bellwether.

The vote was framed by supporters as part of a broader struggle over economic inequality and the political influence of the billionaire class.

Supporters say the state needs additional money to help offset federal healthcare cuts implemented in 2025 under H.R. 1, known as the "One Big Beautiful Bill Act," and to protect hospitals, emergency rooms, clinics and Medi-Cal services. Proponents also…

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