By — Sophie Austin, Associated Press Sophie Austin, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/politics/california-voters-reject-tax-on-net-worth-of-billionaires Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter California voters reject tax on net worth of billionaires Politics Nov 10, 2026 1:48 PM EST SACRAMENTO, Calif. (AP) — California voters have rejected a first-in-the-nation tax on the net worth of billionaires following a contentious ballot fight that generated huge spending by some prominent tech leaders eager to stop their taxes from going up. The measure's failure is a win for Democratic leaders who opposed it, including Gov. Gavin Newsom, who may run for president in 2028. Critics of the tax, known as Proposition 40, said it would have prompted ultrawealthy taxpayers to leave the state. Most Californians vote by mail, and any ballot postmarked by Election Day that arrives within a week is counted, meaning it often takes days or even weeks for close races to be settled. The Associated Press determined Monday that 'no' had received enough votes to win. The "no" side raised roughly 10 times as…
California voters reject tax on net worth of billionaires
In short
The proposed one-time 5% wealth tax was originally formulated to channel critical funding into food programs, education, and healthcare offsets caused by federal cuts. However, a well-funded opposition effort raised over $333 million to aggressively push back against the initiative. Demographically, the measure showed sharp divides, drawing strong support from voters under 30 but facing deep resistance from seniors and households earning over $100,000. Governor Gavin Newsom was among the high-profile state leaders who opposed the measure due to economic concerns.
Key points
- Vermont Senator Bernie Sanders supported the failed initiative to fund education, food as…: Vermont Senator Bernie Sanders supported the failed initiative to fund education, food assistance, and federal healthcare backfills.
- Groups such as Planned Parenthood and the California Medical Association opposed the tax…: Groups such as Planned Parenthood and the California Medical Association opposed the tax due to revenue distribution and budget risks.
- Proponents have indicated they may attempt to place the wealth tax measure back on the ba…: Proponents have indicated they may attempt to place the wealth tax measure back on the ballot in 2028.