The measure provides for an exceptional levy of 5% of billionaires' taxable wealth to finance hospitals in particular. The proposal provides for allocating 90% of the revenue to public health, notably to care and medical services. For supporters of the tax, billionaires must contribute more to its funding.
The principle is relatively simple: anyone who resided in California on January 1, 2026 and then owned a net worth of more than one billion dollars would be affected.
California thus faces a dilemma: tax its wealthiest residents more to fund public services, at the risk of seeing some relocate their activities or residence.
The issue is particularly sensitive in this state, where the Medi-Cal program allows the most modest residents to access health coverage.
The remaining 10% would be earmarked for education programs, food aid and the administrative costs of the scheme.
For a fortune of one billion dollars, that would amount to 50 million dollars. The proponents of the measure hope to raise about 100 billion dollars in total.
On the occasion of the U.S. midterm elections, Californians must also vote on a controversial referendum, Proposition 40.