40One-time 5% tax on billionaires (mostly for health care)

#Key findings

• The sponsor, SEIU-UHW, has filed dozens of initiatives since 2012 and lost every statewide one it took to a vote: dialysis Props 8, 23 and 29 got 40%, 37% and 32%. Several others were dropped after deals with hospitals. ^[1][2]
• In June 2026 the union offered to drop this measure for a 2% legislative deal. No deal happened. ^[3]
• Wealth taxes elsewhere: 12 OECD countries had one in 1990 and 4 in 2017; as of 2025, 3 do (Spain, Norway, Switzerland, per the Tax Foundation), raising 0.6–4.3% of their tax revenue. The OECD says they "often failed to achieve their redistributive objectives." ^[4]
• Revenue is "tens of billions" but "very hard to predict" (LAO). The sponsor says ~$100B. Six billionaires reportedly left before the Jan 1 cutoff, taking an estimated $26.8B of the projected base. ^[5][6][1]
• The 90% for health care is one-time money, not an ongoing funding source ^[5]. Health care spending could indirectly benefit members of the sponsor's union through more secure jobs and pay. ^[7]

#Track record

The sponsor's ballot history

Taxes on the very rich in other states

#Money and conflicts

• Yes $33.4M (mostly SEIU-UHW). No $130.3M, led by Building a Better California (Sergey Brin $102M, Eric Schmidt $40.2M, John Doerr $40M). Peter Thiel gave $3M. ^[10][11][6]
• The money fight is billionaires vs. a union. Brin, one of the billionaires the tax targets, reportedly left the state before the cutoff. ^[6]
• Labor is split. CTA, firefighters and the Building Trades oppose it. Teamsters, AFSCME and the Labor Federation support it. ^[9]

#Does it solve a lasting problem?

• No. It is one-time money, not ongoing funding, its revenue is "very hard to predict," and it could shrink the income-tax base if billionaires leave (LAO: probably less than $1B a year lost). Health groups say they "weren't consulted in designing the measure"; Planned Parenthood and the CMA oppose it. ^[5][9]

#If you vote yes: accountability

Bottom line: The tax is collected by the Franchise Tax Board, but where the health money goes is left to the Legislature, up to $22.5B a year. There's no State Auditor review and no independent oversight board. ^[13]

#Who decides, and who answers for it

• The Franchise Tax Board assesses and audits the tax. ^[13] Its board is the State Controller, the chair of the Board of Equalization, and the Director of Finance. ^[14] The Controller and Board of Equalization races are both on this ballot.
• The Legislature decides each year how to spend the health money, within broad uses: restoring federal cuts, Medi-Cal and other coverage, safety-net providers, and preventing closures. ^[13]
• The Department of Finance must report to the Legislature on the fund, and certify that the money adds to existing health spending rather than replacing it. ^[13]

#What to watch

• Collection. Revenue is "very hard to predict." ^[5] Six billionaires reportedly left before the cutoff. ^[6] Watch for lawsuits over residency, and how much is actually collected.
• Supplanting. One-time money can quietly replace regular spending. The Finance Department's certification is the check, so read it.

#Who to press, and what to ask for

1. Your Assemblymember and state Senator: require a State Auditor audit of how the fund is spent, and publish every grant or payment by recipient.
2. Controller and Board of Equalization candidates: they'll sit on the Franchise Tax Board. Ask how they'll publish collections data without exposing individual taxpayers.

#Public records to request (CPRA)

Anyone can file a California Public Records Act request (the state's version of FOIA), with no reason required. Agencies must respond within 10 days, or 24 in unusual cases. ^[15] Individual tax returns are confidential, but how the fund is spent isn't.

To the Department of Finance: Under the California Public Records Act (Gov. Code § 7920.000 et seq.), I request each report and supplanting certification submitted to the Legislature under Government Code section 16355(f) concerning the 2026 Billionaire Tax Reserve Fund, with supporting worksheets.