Tax
Sep. 28, 2026
The billionaire tax is good policy and good law
Proposition 40 would impose a one-time 5% tax on California billionaires' wealth to help offset healthcare cuts. Its proponents argue that the measure is both economically sound and legally defensible against challenges raised by opponents.
David Gamage
Law School Foundation Distinguished Professor of Tax Law and Policy
University of Missouri School of Law
Proposition 40 would impose a one-time 5% tax on billionaire wealth. The tax can be paid in five installments (1% and interest). There is also a deferral mechanism for liquidity-constrained taxpayers. Most of the assets of billionaires are public and hence easily valued. Most of their remaining assets are in larg...
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