Proposition 40 would have imposed a one-time 5% levy on residents holding fortunes over $1.1 billion, covering assets such as shares and income. Backers hoped the estimated $100 billion yield would bridge state budget shortfalls and offset federal funding cuts linked to President Donald Trump's tax and spending legislation. However, intense opposition mounted as wealthy figures invested millions to block it, with Google co-founder Sergey Brin alone spending over $100 million.
Key points
Governor Gavin Newsom opposed the wealth tax out of concern it would trigger an exodus of…: Governor Gavin Newsom opposed the wealth tax out of concern it would trigger an exodus of top taxpayers and harm revenue.
The defeat followed deep internal divisions among California labor unions and members of…: The defeat followed deep internal divisions among California labor unions and members of the Democratic party.
Some wealthy individuals chose to relocate away from California entirely rather than face…: Some wealthy individuals chose to relocate away from California entirely rather than face the proposed tax.
Sources checked by our analysis pipeline: 1
- Published
California voters have voted to reject a wealth tax on its billionaires.
The ballot proposal would have levied a one-time tax on the state's mega wealthy to help fund healthcare. It took nearly a week of counting votes after the midterm election to determine a projection on the measure.
There are about 200 billionaires in the state, including Meta's Mark Zuckerberg, reality television star Kim Kardashian and media mogul Oprah Winfrey.
Proposition 40 targeted Californians with a wealth of more than $1.1bn (£800m) with a 5% tax on their total wealth, including assets such as shares as well as income. It failed amid divisions among Democrats and labour unions.
Are California voters about to impose 'world's first' tax on billionaires?
- Published24 October
Had it passed, experts believe it would have been the world's first wealth tax targeting billionaires.
The tax would have raised about $100bn to make up for federal funding cuts to healthcare in California as a result of President Donald Trump's sweeping tax and spending bill.
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