A fact‑check released on Oct. 4, 2026 found that the wealth tax created by Proposition 40 is limited to individuals with net worth over $1 billion and cannot be broadened to cover ordinary Californians.
The measure, approved by voters in the 2024 election, imposes the tax only on those billionaires and does not give California lawmakers authority to extend it. Opponents of Proposition 40 argue the tax could set a precedent for future wealth taxes on everyday citizens.