California billionaire tax goes to voters in midterms

California voters will decide in the November 3 midterm elections whether the state's roughly 200 billionaires should pay a one-time tax of 5% of their net worth, mostly to fund public healthcare.

Supporters of Proposition 40 say the measure could raise about $100 billion and help cover healthcare funding needs after reductions in federal support under President Donald Trump. Brian Galle, a University of California, Berkeley law professor who helped write the measure, said households could otherwise face an average of $7,500 in extra healthcare costs over the next few years.

Opponents, including Google co-founder Sergey Brin, have put more than $205 million into the campaign against the measure. They argue it could push wealthy residents to leave California and reduce the state's tax base.

Outgoing California Governor Gavin Newsom has said he will vote no. United Domestic Workers, a union representing 250,000 home care and child care providers, is also opposing the measure, saying a one-time tax is not the right way to address large state budget gaps.

The proposal has drawn support from Senator Bernie Sanders and economists including Emmanuel Saez of the University of California, Berkeley, who helped draft the text. Saez said similar initiatives could appear in other states if the California measure passes.