California billionaires prepare legal challenge to proposed wealth tax

California: California is a U.S. state on the Pacific coast with a major technology and innovation sector. It is preparing to hold a November vote on Proposition 40, the nation's first proposed wealth tax on billionaires residing in the state as of early 2026. Billionaires in the state are already organizing legal challenges in anticipation of the measure passing. Ballot Initiative: The wealth tax appears on the November ballot as Proposition 40, alongside counter-measures designed to block or limit it if approved by voters. Legal Preparation: Business groups representing powerful companies have retained top legal counsel to challenge the tax in court should it pass. Political Positioning: The proposal has created divisions among Democrats, with state leaders endorsing alternative measures to prohibit future wealth taxes.