California voters rejected Proposition 40's proposed one-time 5% levy on residents holding over $1 billion in net worth, while concurrently advancing measures to restrict asset taxation. Conversely, Washington State voters approved a 9.9% tax on household incomes exceeding $1 million, showing regional appetite for taxing high earners. Emboldened federal Democrats now plan to introduce wealth and income surtaxes, even though expected vetoes from President Trump will likely delay implementation until future election cycles.
Key points
Service Employees International Union-United Healthcare Workers West plans to bring Calif…: Service Employees International Union-United Healthcare Workers West plans to bring California wealth taxation back to the ballot in 2028.
Federal Democratic lawmakers intend to leverage their congressional majorities to pursue…: Federal Democratic lawmakers intend to leverage their congressional majorities to pursue surtaxes and an annual wealth tax on billionaires.
Anticipated presidential vetoes will prevent immediate enactment of federal wealth taxes,…: Anticipated presidential vetoes will prevent immediate enactment of federal wealth taxes, setting policy benchmarks for the 2028 campaign.
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The likely defeat of the California billionaire tax may energize Democrats in Congress to propose federal tax hikes on high earners along with a potential federal wealth tax, according to tax experts.
While the votes in California are still being counted, 56% of the state's voters have voted "no" on the billionaire tax while 44% voted "yes." The ballot measure requires a majority of votes for approval, so election experts say a defeat is likely. The tax, known as Proposition 40, would have imposed a one-time levy of 5% on the net worth of Californians worth over $1 billion.
Two ballot measures designed as poison pills against the billionaire tax are garnering strong support. Proposition 41 and Proposition 42, which limit revenue use and prevent any state taxation of personal assets, are both showing majority "yes" votes. If either gets more votes than the billionaire tax, the billionaire tax is…
Newly unsealed legal records reveal federal immigration authorities coordinated travel logistics with Tehran officials to execute removal orders despite an ongoing armed conflict. An active lawsuit alleges the government improperly transferred confidential asylum seeker information to facilitate these returns. A federal judge has intervened over safety concerns, requiring advance notice before any further deportation efforts take place.
Newly unsealed court records reveal that federal immigration authorities secretly coordinated with Tehran as recently as mid-October to organize three deportation flights through a third nation. The policy faced fierce scrutiny from a federal judge after a lawsuit claimed confidential asylum seeker records were improperly shared with Iranian officials during wartime. These covert efforts highlight an aggressive push to execute removals despite severe safety risks to the deportees.
State election officials continue tallying ballots that indicate the ambitious wealth-tax initiative will fall short of passage. The measure sought to tap into the fortunes of the state's richest residents to inject substantial new funding into healthcare programs. Its anticipated rejection marks a significant setback for advocates attempting to address healthcare finance through targeted billionaire asset levies.