TAX Is on the Ballot These Midterms

Tax policy is a major direct-vote issue in this November’s midterms, with wealthy donors spending at least $430 million nationwide to defeat measures that would raise taxes on the richest Americans—or to support measures that preserve low taxes on the ultrawealthy. The principal battlegrounds are California, Colorado, Washington, and North Carolina.

California

California’s Proposition 40 would impose a one-time, 5 percent tax on residents with a net worth above $1 billion. Supporters say the revenue would help replace lost federal funding for health care, education, and food-assistance programs.

Opponents have spent more than $255 million against the measure, and polling cited by Politico indicates that independents have moved away from it. Governor Gavin Newsom, Democratic gubernatorial candidate Xavier Becerra, major unions including the California Teachers Association, and Planned Parenthood oppose Proposition 40, arguing it could drive wealthy taxpayers out of the state and undermine more durable tax approaches.

Separately, ultrawealthy interests have spent $170 million supporting Propositions 41 and 42—measures characterized by The Lever as potential “poison pills” that could weaken or block the billionaire tax. Proposition 42, endorsed by Newsom, would bar retroactive taxation and “double taxation,” effectively prohibiting new state taxes on assets such as stocks, bank funds, personal and intellectual property, and retirement accounts. The California Budget and Policy Center warns that this would make it harder for the state to raise revenue from wealthy households.

Colorado

Colorado’s Amendment 87 would replace the state’s flat income-tax structure with a progressive one. It would reduce taxes for an estimated 97 percent of Coloradans, while businesses and individuals earning more than $550,000 would likely pay more; proponents project an additional $2.7 billion annually for services such as health care and education.

Opponents have spent $1.4 million against the amendment. Governor Jared Polis has urged voters to reject it, saying the top rate would nearly double from 4.4 percent to 8.4 percent and could harm the economy and raise consumer prices.

A competing measure, Proposition 136, would lock in Colorado’s current flat 4.4 percent individual and business income-tax rate. Donors have contributed more than $300,000 to support it.

Washington

Washington voters will consider repealing the state’s newly enacted millionaire tax before it takes effect in 2028. The tax imposes a flat 9.9 percent levy on household income above $1 million.

More than $8 million has been raised to support repeal. The effort is led by hedge fund manager and Republican megadonor Brian Heywood, who argues that lawmakers should reduce spending rather than rely on the new tax.

North Carolina

North Carolina’s ballot includes a constitutional amendment that would cut the state’s maximum income-tax rate from 7 percent to 3.5 percent. It would also prevent future lawmakers from raising the rate above 3.5 percent without voter approval.

The amendment is being promoted through a public-relations campaign by Americans for Tax Reform, which The Lever describes as a Koch-backed dark-money group.

Bottom Line

The measures show two competing visions of state tax policy: progressive taxation aimed at funding public services through higher taxes on high earners and wealth, versus constitutional or statutory limits designed to restrain future tax increases. With more than $430 million already in play, the outcome of these ballot fights may shape state revenue policy long after Election Day.

Source: Veronica Riccobene, “The $430 Million War Against Taxing the Rich,” The Lever / Lever Daily, October 15, 2026. Edited by Emily Carmichael and Jordan Heller.

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