California Voters Reject 5% Billionaire Tax Measure Despite Democratic Tilt
Updated
Updated · The New York Times · Nov 10
California Voters Reject 5% Billionaire Tax Measure Despite Democratic Tilt
3 articles · Updated · The New York Times · Nov 10
Summary
California voters rejected Proposition 40, blocking what would have been the nation’s first wealth tax on residents worth more than $1 billion.
The measure would have imposed a one-time 5% levy on billionaires’ personal assets and directed most of the revenue to health care.
Gov. Gavin Newsom opposed the proposal even as the California Democratic Party endorsed it, leaving Democratic leaders split in a state where left-leaning candidates otherwise performed strongly.
Billionaires targeted by the tax helped fund a heavy October TV ad campaign against it, while supporters relied on a weaker coalition and cheaper social media and influencer outreach.
The result, called nearly a week after Election Day as mail ballots were counted, is likely to shape arguments against wealth taxes ahead of the 2028 presidential race.