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DSA-LB says yes on Prop. 40 — the 2026 Billionaire Tax Act
The California Billionaire Tax Act would levy a one-time 5% tax on any California resident worth more than $100b to fund healthcare, education, and food assistance.
Without this funding, thousands of jobs will be lost, millions of Californians could lose coverage altogether, and care facilities across the state could be forced to close.
DSA-LB has endorsed Prop. 40, and we're taking action to make the Billionaire Tax Act a reality.
Taxing the ultra-rich benefits our state
A one-time wealth tax:
Keeps hospital ERs, clinics, nursing homes, and home care open and staffed in every community;
Stabilizes premiums and coverage, so families can see a doctor when they need one;
Protects healthcare jobs and the middle-class economy they support;
Funds public K-14 education to keep classrooms staffed, protect programs, and ensure every child gets a quality education; and
Funds state food assistance programs to keep millions of Californians from losing access to food and support school nutrition programs.
The argument against taxing the rich doesn't hold water
Opponents claim that the Billionaire Tax Act will cause the wealthy to flee California, thereby undermining future efforts to collect tax revenue. This isn't a valid concern, because:
Studies show that the ultra-wealthy have very low migration rates and do not flee states en masse when income or wealth-targeting taxes increase. For example, the overall number of millionaires and their cumulative wealth continued to grow in Massachusetts following the implementation of a 4% surtax on incomes over $1 million.
However, to be extra cautious, the proposed tax is structured as a one-time tax precisely to eliminate incentives to avoid the tax by leaving the state.
Action steps you can take
Vote YES on Prop. 40 during the 2026 General Election.
Join the DSA-LB Billionaire Tax Working Group at our next meeting, and help us tax the rich.
We echo the words of Suzanne Jimenez, the Chief of Staff of SEIU-UHW — the union that has led the charge for the 2026 Billionaire Tax Act: "“Asking those who have benefited most from the economy to contribute more — particularly to stabilize healthcare systems under direct threat — is a reasonable step.”