After Prop 40's Likely Defeat, Union Vows 2028 Return as Wealth-Tax Fight Shifts to Congress

Proposition 40, the one-time 5% tax on California billionaires, appears headed for defeat, with nearly 56% of voters rejecting it as of Wednesday afternoon, KALW reported. But the union that put it on the ballot says it is not done.

"California's healthcare workers intend to be back on the ballot in 2028," SEIU-United Healthcare Workers West president Dave Regan said in a video conference, according to KALW. He vowed "to correct the damage and overcome all of the lies and deception and completely outrageous campaigning we've seen."

CNBC reported that the union all but conceded Tuesday night and said it would try again in 2028 unless the Legislature acts to "make billionaires pay their fair share." Props 41 and 42, built as poison pills against the tax, were both showing majority yes votes.

Tax experts told CNBC the defeat may energize Democrats in Congress, now set to control both chambers, to propose higher taxes on high earners. One option is the "Make Billionaires Pay Their Fair Share Act" from Silicon Valley Rep. Ro Khanna and Sen. Bernie Sanders. It would impose an annual 5% tax on net worth above $1 billion.

President Trump would likely veto any Democratic tax plan, CNBC noted. Experts said proposals introduced in the next two years could still shape the 2028 debate.

Vote counts cited here are unofficial. Bay Area counties are still processing mail and provisional ballots, and results are not certified until later this month, so margins can change.