DSA-LB Endorses 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 $1 billion 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.

Join the Tax the Rich Working Group, and remember to:

• Vote YES on Prop. 40 by November 3

• Vote NO on Props. 41 and 42 — initiatives designed and funded by billionaires and Republican think tanks to cancel out Prop. 40 and severely hinder CA’s ability to tax extreme wealth in the future

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.

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 on any billionaire residing in CA as of Jan. 1, 2026 precisely to eliminate incentives to avoid the tax by leaving the state.

We echo the words of Suzanna 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.”