California voters to decide on one-time 5% billionaire wealth tax

California voters will decide on November 3 whether the state’s billionaires should pay a one-time 5% tax on their net worth. The measure, known as Proposition 40, aims to raise $100 billion to offset federal funding cuts to California’s healthcare system.

More than 200 billionaires live in California, including Oprah Winfrey, Mark Zuckerberg, Kim Kardashian, and George Lucas. Some ultra-wealthy residents have already left the state because of the proposal, and one billionaire businessman said it made him feel “a little bit like I wasn’t wanted.”

Francesco Trebbi, a public policy professor at the University of California, Berkeley, called the measure historic and said it targets an extreme percentile of wealth distribution. He added that it could help narrow California’s wealth gap.

California has the largest state economy in the United States and the fourth-largest economy in the world, bigger than India and the United Kingdom. At the same time, it has the nation’s largest share of homeless people and one of the highest wealth gaps.

Supporters argue the ultra-wealthy should contribute a fair amount to fill state budget gaps. Suzanne Jimenez, chief of staff for Service Employees International Union-United Healthcare Workers West, described the measure as a “short-term solution” to federal cuts tied to President Donald Trump’s tax and spending bill.

Opposition has divided state leaders, and some billionaires have fled California. The vote will take place alongside the midterm elections.