California could become the first U.S. state to impose a wealth tax on its billionaires if Proposition 40 passes in November. The measure would require residents worth more than $1 billion to pay a one-time tax equivalent to 5% of their assets, potentially raising $100 billion in revenue. Six Nobel Prize-winning economists backing the initiative estimated that California’s 250 billionaires, collectively worth $2.3 trillion, paid only 1.6% in state income taxes on their $1.4 trillion wealth gains from 2019 to 2025. Polls show 52% of likely voters support the measure, while 46% oppose it.
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