# California’s billionaire tax faces defeat, but Democrats plan higher taxes on the wealthy

- URL: https://talkfuse.com/story/californias-billionaire-tax-faces-defeat-but-democrats-plan-higher-taxes-on-the-wealthy/
- Published: 2026-11-05T16:19:21+00:00
- Updated: 2026-11-05T22:06:21+00:00
- Original publisher: CNBC (publisher lean: Centre)
- Original article: https://www.cnbc.com/2026/11/05/as-california-billionaire-tax-fizzles-democrats-plan-taxes-on-wealthy.html
- Topics: Business, Government, Politics

## Key points

- California’s proposed 5% billionaire tax is likely to lose.
- Washington backed a 9.9% tax on income above $1 million.
- Democrats may pursue federal tax hikes on high earners.

## Summary

California’s proposed one-off tax on billionaires appears likely to fail, even as voters in some other states back higher income taxes on high earners. Tax experts say the result could strengthen Democrats’ efforts to raise federal taxes on wealthy households and businesses, while lowering taxes for middle- and lower-income people.

With 56% of California voters opposing Proposition 40 and 44% supporting it, the measure is short of the majority needed to pass. It would have taxed the net worth of Californians worth more than $1 billion at 5% once; two opposing measures are also leading. The sponsoring healthcare union said it may try again in 2028. Washington voters supported a 9.9% tax on household income above $1 million, while Colorado’s proposed graduated tax, with a top rate of 8.4% above $1 million, remained too close to call. One federal proposal would add a surtax of up to 12% on incomes above $5 million and raise the top capital gains rate from 23.8% to 35.8%.

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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.