proposition

About 260 California billionaires would be subject to Proposition 40’s one-time 5% wealth tax according to the Forbes Real-Time billionaires list. Just 30 of those billionaires or their spouses, or 1 in 8, spent money opposing Proposition 40, the billionaire tax, according to a Times analysis of recent campaign filings.

Billionaires have individually contributed $293 million to oppose the tax measure and to support Proposition 41 and 42, which would nullify the billionaire tax if either receives more votes, according to a Times analysis. Sergey Brin, co-founder of Google, has given $102 million, more than a third of all billionaire money against the measure. But this is less than 1% of his estimated tax bill.

Several billionaires also contributed to the political action committee of the California Business Roundtable, which is spending to oppose Proposition 40 and support Proposition 43. Peter Thiel gave $3 million, Eric Schmidt gave nearly $2.6 million, Marco DeGeorge’s wife, Kim, gave $1.9 million, Chris Larsen gave $750,000 and Douglas Leone and his wife gave $500,000.

Proposition 40 would apply the tax to billionaires who were California residents on Jan. 1, 2026, and the taxable amount would be based on their net worth on Dec. 31. The tax is payable over five years.

Altogether, these individuals would owe at least $107 billion in taxes, according to an analysis by economists Jasper Boll, Emmanuel Saez and Gabriel Zucman. Their research was published in the National Bureau of Economic Research in August. Saez and Zucman are also architects of the tax proposal.

This amount is 5% of their combined estimated wealth by Forbes as of Oct. 16 and factors in a certain amount of tax avoidance and evasion. Spread across all 39 million Californians, the $107 billion would be roughly $2,700 per person. The Public Policy Institute of California estimates that the median household net worth in California was $303,000 in 2023.

The four richest Californians — Sergey Brin, Jensen Huang, Larry Page and Mark Zuckerberg — would owe 40% of the estimated taxes to be collected from the billionaire tax, according to a Times analysis. Their wealth largely comes from ownership of stock in extremely high-value technology companies.

Their net worth would increase 5% in about four months if their stock investments continues to grow as they have since December.

California billionaire wealth grew nearly threefold from 2022 to 2026, according to Times analysis of Forbes data collected by Boll and his colleagues, and much of that growth was not taxed. Billionaires’ taxable income is small compared with their wealth, because most of that wealth is invested in public stocks, and gains aren’t taxed until the stock is sold.

Page and Brin disclosed no taxable income in three of the years since 2019. Many others had similarly no publicly disclosed income. For that reason, Boll and his colleagues estimate that the Proposition 40 one-time tax would raise more than $100 billion, “with comparatively minor impacts on income tax revenue” from some billionaires leaving the state.

Based on Meta’s filings, the economists estimated that Zuckerberg’s taxable income was about $947 million in 2025, just 0.4% of his net worth.

Over the summer, Zuckerberg shared with Meta advisors his plans to relocate outside California to avoid the possibility of a significant reduction in his control over the company as a result of selling enough stock to fund a 5% tax. The advisors determined that Zuckerberg’s leadership presence at Meta headquarters was essential to the company’s success. On Wednesday, Meta announced the creation of new, nonvoting Class C common stock, which will allow Zuckerberg to sell the amount he needs to pay his potential tax bill while maintaining his voting power in exchange for his commitment to remain in the state for eight years.

Researchers at the Hoover Institution estimate the revenue to the state to be closer to $40 billion based on reports of billionaires’ residential purchases outside the state before and after Jan. 1 and their estimate of unannounced residency moves.

Chris Hoene, executive director at the California Budget and Policy Center, a nonpartisan group, said the residency question hinges on the amount of time spent living in the state. “Purchasing property in another location does not mean that they have changed their residency,” he said.

Ultimately, the state’s Franchise Tax Board, responsible for administering the tax, will have to assess residency. Hoene says this task is “easier for them to do than people realize.” The board will also calculate the amount of wealth subject to the tax using publicly available stock information and private assessments of personal property, such as artwork and jewelry. Real property, pensions and retirement accounts would be excluded.

Opponents of Proposition 40 are concerned that the threat of wealth taxes will lead to billionaires continuing to leave the state, resulting in a long-term decrease in state income tax revenue. Forbes recently reported that Brin registered to vote in Nevada last year. Peter Thiel disclosed Dec. 31 that he opened a new office in Miami; Florida has no wealth tax or income tax. But in July, he purchased a $130-million mansion in Bel-Air.

“The reality is the income tax loss can never get anywhere near the scale of what the wealth tax gain would be,” Hoene said.

Ninety percent of that gain would be spent on healthcare services to fill a gap in Medi-Cal from losses in federal funding that the measure’s authors estimate would total $190 billion over the next 10 years. Medi-Cal provides healthcare coverage for one-third of low-income Californians, according to the Legislative Analyst’s Office.

Gov. Gavin Newsom opposes a California-only tax and has instead called for a national wealth tax. Democrat Xavier Becerra and Republican Steve Hilton, who are running to replace Newsom, have spoken out against the tax. Other opponents include the California Teachers Assn., the California Medical Assn., and Planned Parenthood Affiliates of California. Supporters include Service Employees International Union, U.S. Sen. Bernie Sanders (I-Vt.), the California Democratic Party and the California Federation of Labor Unions AFL-CIO.

Times staff writer Queenie Wong contributed to this report.

Foes of Gov. Gavin Newsom, who is widely viewed as a likely 2028 presidential candidate, are launching television and digital ads this weekend in early primary states that criticize the governor’s opposition to the proposed billionaire tax on California’s November ballot.

The ad, funded by backers of the wealth tax, castigates Newsom for opposing Proposition 40, the ballot measure that would impose a 5% tax on California billionaires’ assets to offset federal healthcare funding cuts approved by congressional Republicans and signed by President Trump last year.

“We’re all struggling with the high cost of healthcare. In California, Democrats are championing a one-time tax on billionaires that would save coverage for millions,” a narrator says in the 30-second ad. “So why [has] presidential hopeful Gavin Newsom betrayed his own supporters by trying to sabotage the billionaire tax? Maybe it’s because the same billionaires who oppose Prop. 40 also gave millions of dollars to Newsom. Gavin Newsom turned his back on working Californians. Will he do the same to you?”

The ad specifically calls out billionaires Stewart Resnick, who owns several businesses including Pom Wonderful, Fiji Water and Justin Wines; crypto executive Chris Larsen; former Google leader Eric Schmidt; and venture capitalist Michael Moritz, all of whom have backed Newsom’s political ambitions.

Newsom has argued that, although he supports wealth taxes, they ought to be enacted at the national level, rather than a state-by-state patchwork that could drive the rich to leave California, a state with a volatile budget heavily dependent on the state’s wealthiest residents.

The primary funders of the ad are the Service Employees International Union – United Healthcare Workers West, which crafted Proposition 40; Saikat Chakrabarti, a climate change warrior and political advisor who made his wealth in part as a founding engineer at Stripe; and Ross Boucher, an early engineer at Stripe.

The ad buy is six figures but could grow, according to its backers. Among the states where the ad is expected to air are South Carolina, Nevada, New Mexico, Virginia and New Hampshire.

Earlier this month, Newsom stumped for candidates in New Hampshire, his latest foray to early presidential primary states.

The ad launch comes amid a contentious, expensive battle over the proposed wealth tax, which has divided Democrats and their allies. Although Newsom is among Democrats who oppose it, the ballot measure was endorsed by the state Democratic Party and Sen. Bernie Sanders (I-Vt.). Voters are closely divided about the measure.

The measure aims to tackle the cost of what it takes to run a campaign and to broaden the pool of people who could run for office without being tethered to any individual, group or special interest.

“The increasing costs of political campaigns can force candidates to rely on large contributions from wealthy donors and special interests, which can give those wealthy donors and special interests disproportionate influence over governmental decisions,” the measure states.

There have been several attempts to allow for public campaign financing in California. Five charter cities, including Los Angeles, and at least 14 other states already allow some version of it.

“This bill will restore control to local governments and the state by giving counties, districts, general law cities, and the state the same option that charter cities currently have to enact public financing of campaigns,” a Senate rules committee analysis states.

Money generated by Proposition 3, like the current tax, would flow to education, with 89% going to K-12 schools and 11% to community colleges.

Then, because the state constitution requires minimum levels of spending on education, more dollars are freed up to pay for services including healthcare and the University of California and California State University systems, said Kayla Kitson, a senior analyst with the California Budget and Policy Center.

Proposition 3, like the current high-earners tax, has the added effect of raising the minimum levels of funding required to flow to K-12 schools and community colleges, because of the complicated formulas California uses to set its budget, Kitson said.

If Proposition 3 fails, the state could expect to lose between $5 billion and $15 billion annually in tax revenue starting in 2031, according to estimates from the Legislative Analyst’s Office.

ROSEVILLE, Calif. — San Diego County Republican Carl DeMaio had a warning for conservatives at a get-out-the-vote rally this month in Placer County.

“You are doomed,” DeMaio said, crooning the phrase like a foghorn. The audience chuckled.

“Doomed” is DeMaio’s description for races that lack a conservative candidate. Skip voting in those, he told the crowd, briskly walking them through the Nov. 3 ballot.

Rep. Carl DeMaio speaks to attendees during a “Beer, BBQ & Ballots” event for Proposition 39 at the Nevada County Fairgrounds.

(Fred Greaves / For The Times)

Microphone in hand, the freshman state legislator paced the floor, threw up his hands and scowled as he declared California a “communist state,” the progressive Bay Area “the gates of hell” and Hillary Clinton “the wicked witch.”

Urging volunteers to door-knock at Republican households, he instructed them to ignore Democratic homes entirely.

“I don’t need to remind them there’s an election going on,” he said, prompting more laughs.

DeMaio, 52, is emerging as a prominent voice for California Republicans, promising a path back to power and delighting audiences with his sharp takedowns of Democrats. His vehicle this election is Proposition 39 — he is coauthor of the ballot measure — which would require Californians to provide ID when voting, an initiative backed by millions of dollars from conservatives and condemned by the state’s Democratic leaders and voting rights experts.

A woman grabs a “Yes on 39” lawn sign at the Nevada County Fairgrounds.

(Fred Greaves / For The Times)

On his YouTube channel, he regularly skewers Gov. Gavin Newsom, the Sacramento “swamp” and the media with shows titled, “Thinking of California? 3 Reasons Not to!” and “Socialism on the CA Ballot in 2026!”

His advocacy group, Reform California, supports conservative candidates and helps raise money. Backed by volunteers, the group is usurping the California Republican Party’s influence, according to both his critics and allies.

DeMaio appears undaunted by his quest.

Registered Democrats outnumber Republicans nearly 2 to 1 in California, control the state Legislature and hold every statewide elected position. In Los Angeles, a democratic socialist running for mayor leads in some polls.

“Republicans are tired of what’s going on in the state of California, and they’re looking for somebody to lead them out of the minority,” said Corey Gustafson, former chair of the San Diego County Republican Party. “Many people think Carl is the answer to that.”

An alternative GOP machine

In an interview at Reform California’s Escondido office, DeMaio said his goal is to restore political balance in the state by electing more Republicans.

“I’m trying to get my party to pull its head out of its ass, be more effective at campaigning, and get its ideas across,” DeMaio said, ticking off values he believes the Republican Party should champion: socially moderate positions, environmental stewardship and challenging big corporations.

Though the GOP has a poor track record on those issues, DeMaio says: “I’m just simply tapping into something that already exists, that just needs leadership.”

Fairgoers listen to Rep. Carl DeMaio in Nevada County.

(Fred Greaves / For The Times)

Nearby, scores of volunteers sat at long tables, stuffing voter guides — approved and printed by DeMaio’s team — into envelopes. It is an immense undertaking, with every guide tailored to the voter’s local election. Volunteers hand-write the voter’s name and address on the envelope to give it a personal touch.

Matt Rexroad, a political consultant who ran an independent expenditure against DeMaio in his 2024 Assembly race, said that he doesn’t like DeMaio’s “combative side” but praised his effectiveness.

“He’s hardworking and he’s everywhere,” Rexroad said. “What the California Republican Party and the various central committees should be doing? He is basically running and setting up a system that’s totally outside of that which answers to him.”

Ahead of the June primary, the state Republican Party sent a cease-and-desist letter to DeMaio challenging his use of its trademarked elephant emblem and the phrase “Official Republican Voter Guide” on Reform California campaign materials.

Republican candidates endorsed by DeMaio ultimately beat out the party establishment-backed candidates in two significant races in the primary.

Matt Shupe, a spokesperson for the state Republican Party, said that Reform California is benefiting from the strong “foundation” that the party built. “We’re stronger when we work together, and we look forward to doing just that,” Shupe said.

Clashes with business and labor

DeMaio grew up in Orange County, attended a Jesuit school in Maryland and graduated from Georgetown University.

His mother died of breast cancer when he was a teenager, essentially leaving him an orphan because his father was not in the picture, according to DeMaio.

He frequently speaks about his childhood adversity. He recalled visiting his mother in the hospital during her illness, describing how she hid her leg under a blanket and joked that doctors had mistakenly amputated it. “She had a great sense of humor,” he said. “I try to also, no matter what, to keep a sense of humor.”

After college, he founded a think tank dedicated to reforming government. He co-wrote a 2003 report with suggestions for closing California’s massive budget deficit after the dot-com bubble left the state reeling.

Former state Sen. Jim Brulte said the Senate Republican Caucus spent several days reading through DeMaio’s recommendations and ultimately adopted several. DeMaio is “wicked smart,” said Brulte, also the former state GOP party leader.

Former San Diego mayoral candidate Carl DeMaio announces a recall effort against San Diego Mayor Bob Filner in 2013 in San Diego.

(Denis Poroy / Associated Press)

Elected to the San Diego City Council in 2008, he cast himself as a fiscal watchdog, challenging labor unions and businesses’ influence.

He lost a bid for San Diego mayor in 2012, and two tries for Congress, and also twice pursued a voter ID ballot measure before aborting the efforts.

In 2018, he led the successful recall effort against state Sen. Josh Newman over the Fullerton politician’s support of a gas tax, part of what DeMaio called a “gazelle strategy” to target seemingly vulnerable Democrats.

In DeMaio’s winning 2024 state Assembly race, he heavily featured former Gov. Pete Wilson and his signature push for border control. “Gov. Pete Wilson was right,” DeMaio’s ad proclaimed, before blaming both major parties for “doing nothing” on illegal immigration for decades.

The first openly gay Republican Assembly member, he represents a suburban and rural district in northern and eastern San Diego County that covers Santee, Poway and the unincorporated communities of Julian, Ramona and Borrego Springs.

He is running for reelection on Nov. 3 against Democrat Gerald Boursiquot, an IT contractor.

Friction in Sacramento

On his first day in office, DeMaio introduced bills to require voter ID at the polls, repeal California’s “sanctuary state” law, and bar elected officials from trading stocks, among others. All died in the Democratic-controlled Legislature.

His relationship with some Democrats worsened this year after he fueled outrage over a bill introduced by a Democratic Assembly member to make confidential the addresses of those providing legal and humanitarian aid to immigrants.

DeMaio dubbed it the “Stop Nick Shirley Act,” in reference to the conservative influencer, and said it would prevent activists from doing their jobs. MAGA loyalists flocked to Sacramento in solidarity.

The Democrats “can’t stand him,” said Roger Niello, a Republican state senator from Fair Oaks. “And I think he takes wonderful pleasure in that.”

Assemblymember Josh Lowenthal, a Democrat from Long Beach, called DeMaio’s views and tactics “repugnant” but said he has a friendship with the politician.

“When the camera is on, he’s antagonistic, bombastic and has the capacity to start a nuclear war,” Lowenthal said. “In private, he’s affable, thoughtful and willing to exchange ideas with anyone.”

Campaign Chair Carl DeMaio speaks during a rally at the Santa Clarita Activities Center in 2021 for
Gov. Gavin Newsom’s ouster.

(Francine Orr / Los Angeles Times)

Now wrapping up his first term in Sacramento, DeMaio said he dislikes living part time in the state capital and avoids its political culture of nightly fundraisers. Instead, he said, he goes to bed early so he can wake up and record his daily show.

“I’m actually an introvert,” he said. “People don’t believe that. When I am not doing politics, I just want to be home with my cats, my partner and just try to disconnect from the world.”

The voter ID push

DeMaio’s Proposition 39 campaign bus pulled up to Folsom last week, part of a 71-stop tour ahead of the election.

“A lot of people, especially in the Trump era, really like someone who’s loud and fighting for them,” said Sadie Foster, a 34-year-old from Sacramento who volunteered serving potato salad at the event. “Even on the Democrat side, you see that.”

DeMaio, speaking to a large crowd, called his voter ID initiative the “most exciting thing on the ballot to get our base to turn out.”

If passed, Proposition 39 would require voters to present identification at the polls or write a government-approved PIN on the back of mail-in ballot envelopes. It would also require county officials to update voter rolls by removing individuals who have moved or passed away.

Opponents, including prominent Democrats and many voting experts, argue that the measure would make voting harder and disproportionately disenfranchise low-income citizens, rural residents and communities of color. They also point to data consistently indicating that voter fraud, including by noncitizens, is exceedingly rare.

President Trump, who remains widely unpopular in California, also supports stricter voter ID laws. Unlike Trump, DeMaio actively encourages mail-in voting.

A spot for the initiative features a woman asking rhetorically, “Can you dislike Donald Trump and still vote YES on Prop. 39 for voter ID? Yes, you can!”

In an interview, DeMaio linked the proposition to what he described as his longtime interest in election integrity. At the same time, no voter wants to see “an ineligible person casting a vote,” he said.

At an online strategy meeting with volunteers last month, DeMaio instructed them to target “low-propensity, lazy Republicans.”

One volunteer suggested tying their campaign to Trump’s offer to pay voters a $5,000 dividend if Republicans keep control of the U.S. Senate and House of Representatives.

“Please,” said DeMaio, sounding frustrated. “Stay on message. Do not get distracted by shiny objects. Because those shiny objects, according to the data, won’t help us win.”

Under an existing state appropriations restraint, also known as the Gann Limit, lawmakers cannot spend more in the state budget than an amount determined by a formula that takes annual tax proceeds, changes to the population and cost of living into consideration.

Tax revenue above the limit must be divided between schools and refunds to taxpayers. More recent carve-outs in the law also allow leaders to direct excess funds to infrastructure and local government.

The limit applies to most other appropriations of tax revenue, including money that lawmakers tuck away into the “rainy day” fund and other reserves.

California voters also have capped the amount of money lawmakers can set aside in the rainy day fund at 10% of general fund proceeds in a given year.

The proposed changes would exempt deposits into the rainy day fund and a short-term reserve, called the Projected Surplus Temporary Holding Account, from the state appropriations limit. The cap on the rainy day fund would grow from 10% of general fund tax revenue to 20%.

In effect, the measure would allow the governor and the Legislature to put more money into budget reserves, creating another option to avoid triggering rebates.

For example, if the spending limit is $400 billion for the year, and revenue hits $410 billion, the measure would give lawmakers the option to deposit the $10 billion above the spending limit into the rainy day fund, direct the money to infrastructure or give it to local governments, instead of returning the funding to taxpayers and increasing funding for schools.