The Economist

California voters will decide in November on Proposition 40, a proposed one-time 5% tax on the net worth of the state's roughly 250 billionaires. Supporters estimate the measure could raise about $100 billion, with 90% directed to healthcare and the rest split between food assistance and education. Backers argue the funds are urgently needed as federal budget cuts under the Trump administration have already stripped Medi-Cal coverage from more than 200,000 Los Angeles County residents, with researchers warning losses could exceed 1 million statewide by 2028. Advocates, including six Nobel-winning economists, say California billionaires' combined wealth has grown from $700 billion to roughly $2.3 trillion in a decade and that they can afford the tax.

Opponents, including Governor Gavin Newsom, argue such taxation should happen at the federal level and warn of legal and administrative challenges, with rival measures already placed on the ballot. Critics call the proposal's design complex, and a court challenge is considered likely if it passes. The measure's fate could set a precedent for other states weighing wealth taxes.