# Billionaire tax: how a union leader’s ‘crazy’ idea became the defining issue of California’s midterms

- URL: https://talkfuse.com/story/billionaire-tax-how-a-union-leaders-crazy-idea-became-the-defining-issue-of-californias-midterms/
- Published: 2026-10-30T15:00:19+00:00
- Updated: 2026-10-30T19:53:52+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/us-news/ng-interactive/2026/oct/30/california-billionaire-tax
- Topics: Americas, Business, Elections, Politics, Technology, World

## Key points

- California is voting on a one-time 5% tax on billionaires.
- Proposition 40 would fund healthcare and some education and food assistance.
- Opponents have spent more than $356m fighting the measure.

## Summary

California voters will decide in the midterms whether to impose a one-time 5% tax on billionaires, with the money intended to support healthcare, education and food assistance. The proposal, Proposition 40, began as a union-led response to federal healthcare cuts and has become a major political battle, drawing national attention and highlighting debate over wealth inequality.

The measure would apply to billionaires living in California on 1 January 2026. Opponents, including wealthy technology figures, have spent more than $356m through political committees to defeat it; in the first two weeks of October alone, opposition spending exceeded $42.8m. Supporters, including union leader Dave Regan, argue the tax could help address coverage losses projected from federal cuts, while critics question its one-off structure and limits on how the funds can be used.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.