Billionaire tax trails as Brin-backed rival leads
The move
California's Proposition 40, a one-time 5% tax on net worth above $1 billion for state residents as of Jan. 1, 2026, was trailing 55.27% to 44.73% with 61% of votes counted as of a Nov. 4 update, CalMatters reported. A rival measure, Proposition 42, which would bar the state from taxing financial assets or private businesses, was ahead with about 54% support. Under California's rules, when competing measures are on the same ballot, the one with the most votes wins and nullifies the others, so a win for Prop. 42 would void Prop. 40 even if Prop. 40 also passed. Sergey Brin led the opposition, donating $102 million to the committee Building a Better California, which he founded, and relocated his residency out of state.
Why it matters
If the trend holds, California's roughly 200 billionaires avoid a wealth-tax bill that supporters said could raise tens of billions of dollars for healthcare and education.
The bear case
Only 61% of ballots were counted as of the last update, and the union behind Prop. 40 has said it may put the measure back on the ballot in 2028.
What to watch
California's certified final vote count, expected in the coming weeks.
