California voters back billionaire tax as 14% remain undecided: According to reports

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A tax debate lands on the ballot
A proposed billionaire tax is giving California voters another major ballot decision, with a new poll released Wednesday showing more support than opposition among likely voters heading into November statewide. The numbers are not a majority, and many voters remain undecided. Proposition 40 would create a one-time tax on certain wealthy Californians, with revenue directed toward health care programs directly. Depositphotos
The latest poll shows 48% support
In a Mason-Dixon poll, 48% of likely California voters said they would vote yes on Proposition 40, while 38% said they would vote no on the November ballot this fall. Another 14% were undecided. The survey ran Sept. 21-24 among 625 voters who were likely to vote in November. The margin of error was plus or minus 4 percentage points. Depositphotos
Undecided voters still matter
The 14% undecided share means a sizable group had not chosen yes or no when the poll was taken, leaving room for opinions to change before Election Day. The poll does not predict what undecided voters will ultimately do. It simply records their views during the Sept. 21-24 field period, giving a snapshot rather than a final result. Depositphotos
Proposition 40 targets high wealth
Proposition 40 would impose a one-time state tax on certain taxpayers with covered assets valued above $1 billion on the November ballot. The measure focuses on wealth, not annual earnings. The state’s analysis says wealth generally means what someone owns minus debts. California has a few hundred residents with net worth above $1 billion, according to the Legislative Analyst’s Office. Fun fact: California’s Proposition 13, approved in 1978, capped the basic property tax rate at 1% of a property’s assessed value. Depositphotos
Not every asset gets the same treatment
The proposal’s covered assets can include businesses, securities, art, collectibles and intellectual property. Some major categories are excluded from the tax calculation under the measure and its rules as written. Real property is excluded, along with some pensions and retirement accounts. That means the tax would not apply to every dollar or every type of property a qualifying taxpayer owns. Depositphotos
Most of the money would fund health care
Under Proposition 40, 90% of tax revenue would be directed to health care services under its funding allocation rules.

The remaining 10% would go to food assistance or education-related programs. The measure also says the new revenue cannot replace existing funding for those purposes. It would also be exempt from constitutional rules covering school funding, reserves and state spending limits. Depositphotos
The tax would use a 2026 cutoff
The proposal ties eligibility to California residency on Jan. 1, 2026. Billionaires who met the residency requirement on that date could face the one-time tax if voters approve Proposition 40. The Legislative Analyst’s Office says the tax would be due in 2027. Taxpayers could spread payments over five years, but they would pay more for that option under the measure. AevanStock/Depositphotos
The state could collect tens of billions
California’s Legislative Analyst’s Office estimates Proposition 40 would produce a temporary state revenue increase of tens of billions of dollars spread over several years rather than arriving all at once. The exact amount and timing are uncertain because wealth can change quickly, especially when assets depend on stock prices. State officials would incur costs to determine and collect the tax. Depositphotos
There is also a possible revenue tradeoff
The Legislative Analyst’s Office estimates the state could see an ongoing decrease of less than $1 billion per year in income tax revenue collected from billionaires if taxpayer behavior changes. That possibility stems from changes in taxpayer behavior. The state’s analysis says some billionaires could respond to the new wealth tax in ways that reduce their California income tax payments. Depositphotos
Poll asks about wealthy residents leaving
The poll also asked whether voters were concerned that wealthy California residents might leave because of Proposition 40. 59% said they were not or not too concerned in California. 41% said they were very or somewhat concerned about wealthy residents leaving. Those answers measure voter concern; they do not establish how many residents would move if it passes. Depositphotos
Supporters and opponents cite different effects
Supporters say the tax could raise substantial money for health care and other services. They have argued that California needs another revenue source for those priorities under current state conditions. Opponents have argued the measure could encourage wealthy residents to leave, reduce income tax revenue and create budget concerns. These are competing claims about possible effects, not established outcomes yet.

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Little-known fact: California’s personal income tax rate ranges from 1% to 12.3%, with an additional 1% tax on taxable income above $1 million. Depositphotos
Other ballot measures could affect Prop. 40
Propositions 41 and 42 are also on California’s Nov. 3 ballot, and the official voter guide says they could conflict with Proposition 40 under certain legal conditions. The state’s analysis says Prop. 40 could be stopped if either measure receives more yes votes than Prop. 40 and a court finds the measures conflict. That interaction adds complexity. Another side of the ballot fight is playing out online, as a California billionaire turns to influencers to power campaign push. Ale_Mi/Depositphotos
The decision comes Nov. 3
California’s general election is scheduled for Nov. 3, 2026. County elections officials are set to begin mailing ballots on or before Oct. 5, giving voters time to review them carefully. The last day to register to vote is Oct. 19. Proposition 40 will be one of 14 statewide measures on the ballot, giving voters questions to consider before Election Day. For another look at the debate over taxing the wealthy, learn how Zohran Mamdani answers billionaire criticism after tax the rich video sparks clash. What do you think about California’s billionaire tax proposal? Share your thoughts in the comments and let us know where you stand. This slideshow was made with AI assistance and human editing. Read More From This Brand:

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The post California voters back billionaire tax as 14% remain undecided appeared first on When In Your State.