The State of California

Heads to Voters Amid Fifth Amendment Questions Proposition 40 would impose a one-time 5 percent levy on the wealth of roughly 200 residents. Legal scholars say the Takings Clause is not its weakest link—but half a dozen other constitutional doctrines might be. BLUF (Bottom Line Up Front) California's Proposition 40, the "2026 Billionaire Tax Act," will appear on the November 3, 2026, statewide ballot. It would impose a one-time 5 percent excise tax on the worldwide net worth of roughly 200 California residents worth more than $1 billion, measured as of Dec. 31, 2026, and applied retroactively to anyone who was a state resident as of Jan. 1, 2026. Proponents estimate it would raise about $100 billion over five years for Medi-Cal, food assistance, and education; independent researchers at the Hoover Institution put net revenue far lower once behavioral and income-tax effects are counted. Legal analysts across the political spectrum agree the measure will be challenge...