California votes on first state tax on billionaires' wealth

One-time tax on net worth over $1 billion

5 %

Proposition 40 would impose a one-time 5 per cent tax on Californians whose net worth exceeds $1 billion. Most of the money would replace federal healthcare funding cuts.

Backers say the state will lose $100 billion in federal healthcare funding over five years, a union estimate. Governor Gavin Newsom warns the wealthy would leave the state.

A mid-October poll had 52 per cent of likely voters against and 46 per cent in favour. Two rival measures on the ballot could block the tax even if it passes.