Your guide to Proposition 40: California's billionaire tax proposal

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Set us as preferred Labor unions, tech executives and politicians have been sparring over a high-profile ballot measure to tax the assets of California billionaires to mostly fund healthcare.Now voters will get a chance to weigh in.The high-stakes battle over the 2026 Billionaire Tax Act has fueled a debate over whether the state’s ultrawealthy are paying their fair share in taxes.As the cost of living in the Golden State rises, the divide between the megarich and poor has become a more prominent political flash point.

The proposed wealth tax also has divided labor unions and Democrats, some who fear that California entrepreneurs and businesses will flee the state.More than $200 million already has been spent on supporting and opposing Proposition 40, data from the California secretary of state show.The total includes money raised to support two measures that could nullify the billionaire tax proposal.

California California’s general election takes place on Novemer 3.Learn about L.A.’s city and county races as well races for state office.Proposition 40 would impose a one-time 5% tax on billionaires’ assets.

The tax applies to people with a net worth of at least $1 billion who resided in California on Jan.1.Ninety percent of the tax would fund healthcare and 10% would go toward education and food assistance.The tax would impact hundreds of billionaires whose net worth includes assets such as their businesses, stocks and other investments.

Real property, pensions and retirement accounts generally would be excluded.California probably would collect tens of billions of dollars from the wealth tax, but it’s also tough to predict exactly how much, according to an analysis from the Legislative Analyst’s Office.The wealth of billionaires is tied heavily to stock prices that fluctuate, and they might take actions to reduce their taxes, the analysis said.The Service Employees International Union-United He...