Sunita Somvanshi
California voters will decide on November 3 whether to tax the state’s billionaires. One of the people who would pay the most says he is fine with it. Nvidia CEO Jensen Huang told CBS News that he could owe about $8 billion over five years under the proposed tax. He called that “a privilege.” He’s taking a different line from other California billionaires who oppose the measure.
The measure is Proposition 40 on California’s November 3, 2026 ballot. It would place a one-time 5% tax on the total covered net worth of taxpayers and trusts holding covered assets worth more than $1 billion. Once the threshold is reached, the tax applies to the full net worth, not just the portion above $1 billion. The ballot text includes a statutory provision allowing taxpayers to pay the one-time charge in five annual instalments.
Huang, who co-founded Nvidia, gave his view in an interview with CBS News. The network’s report was updated on September 20.
“The fact that I can afford to pay $8 billion in taxes over five years is a privilege,” Huang said. “I feel it’s a privilege. It’s a responsibility.”
He added: “I’m not afraid of paying taxes — I’m just afraid of being poor.”
Bloomberg’s wealth rankings put Huang’s net worth at about $182 billion. That makes him the world’s eighth-richest person, according to CBS.
Most Californians would never pay this tax, since it only applies to those holding over $1 billion in covered assets. The vote still matters to every voter, because the money is earmarked. The measure directs revenue to healthcare, education and food assistance programs. A yes vote is a decision about funding those services through a one-off levy on the very wealthiest residents.
How California's billionaire tax works
Proposition 40 is a wealth tax, not an income tax. Income tax is charged on what you earn in a year. A wealth tax is charged on what you own, such as shares, property and other assets. For founders like Huang, most of that wealth is company stock.
The measure is a one-time charge, not a yearly one. The ballot text allows taxpayers to spread the payment across five annual instalments. Huang’s reference to paying “over five years” reflects that provision.
Why about $8 billion? A 5% charge on a fortune of roughly $160 billion, applied to the full covered net worth, comes to approximately $8 billion. Huang’s figure likely reflects how the measure values covered assets on the valuation date rather than today’s Bloomberg estimate. That’s our arithmetic, not a figure from the measure’s backers or from Huang.
The ballot has a complication. If voters approve both Proposition 40 and a separate measure, Proposition 42, courts could find a conflict between the measures if Proposition 42 receives more yes votes, according to the official voter guide.
California isn’t alone. Ballotpedia counts nine income or wealth tax measures across six states this year, the most since 2000.
Huang’s comments came in the same interview where he rejected warnings that AI could wipe out humanity. We covered those in our earlier report on Huang’s AI remarks. For more, see our California and business pages.
This is a California-only measure. It wouldn’t directly affect UK or Australian taxpayers, though billionaire taxes are being debated in both countries.
Jensen Huang says an estimated $8 billion bill under California’s proposed billionaire tax would be “a privilege.” Proposition 40 would charge a one-time 5% tax on total covered net worth above $1 billion, with money going to healthcare, education and food assistance. The ballot text allows payment in five annual instalments. Voters decide on November 3. Check back for results and analysis after election day.
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