Billionaire tax: how a union leader’s ‘crazy’ idea became the defining issue of California’s midterms

Key Points:

• California voters will decide on Proposition 40, a ballot measure proposing a one-time 5% tax on billionaires to fund healthcare, education, and food assistance, emerging as a response to federal healthcare funding cuts under the Trump administration.
• The billionaire tax has ignited a costly and contentious battle, with tech billionaires spending over $356 million to oppose it through Super PACs, while supporters, including unions and progressive politicians, have relied on grassroots campaigns and endorsements from figures like Bernie Sanders.
• Opposition tactics included attempts to block the measure from the ballot by driving up signature-gathering costs and even trying to buy out signature firms, while the proponents successfully gathered enough signatures to qualify despite these obstacles.
• The campaign has fractured Democratic support, with Governor Gavin Newsom and some prominent Democrats opposing Prop 40, while others, including the California Democratic Party and major labor unions, have endorsed it following internal debates and advocacy.
• Despite heavy spending and negative campaigning from both sides, polls show voter opinions remain largely unchanged, with Prop 40's lead narrowing; proponents view the campaign as a pivotal moment in the national conversation on wealth inequality and taxation of the ultra-rich.