Proposition 40, which would have imposed a one-time 5% tax on the net worth of Californians worth more than $1 billion, is likely to be rejected, with 44% of voters in favor and 56% opposed. Propositions 41 and 42, which limit the use of public revenue and prevent any state taxation of personal assets, are instead receiving strong support. The Service Employees International Union-United Healthcare Workers West, which sponsored the measure, said it will try again in 2028 unless California’s legislature acts. With control of both chambers of Congress, Democrats could introduce higher taxes on high earners, including a top marginal rate of 49%, alongside a federal annual 5% wealth tax on billionaires to offset expected tax cuts for middle- and lower-income taxpayers.
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