California Voters Reject Billionaire Tax, Exposing Democratic Divide
Summary
California voters rejected Proposition 40, which would have imposed a one-time 5 percent tax on the net worth of billionaires who lived in the state on January 1, 2026. The campaign divided prominent Democrats, including Governor Gavin Newsom, who opposed the measure, and Senator Bernie Sanders and Representative Ro Khanna, who supported it.Key Facts
- The Associated Press called the vote against Proposition 40 on Monday, six days after Election Day.
- In the Secretary of State’s count at 5:14 p.m. Monday, 52.9 percent opposed the measure and 47.1 percent supported it.
- The proposed tax was due in 2027 and would have directed 90 percent of revenue to health care, with the rest going to education, food assistance and tax administration.
- The Legislative Analyst’s Office estimated the measure could raise tens of billions of dollars over several years and might reduce annual state income tax collections from billionaires by less than $1 billion.
- The opposition committee, Building a Better California, raised more than $333 million; Google co-founder Sergey Brin contributed more than $100 million.
- Proposition 42, which would add limits on certain taxes to the state constitution, was ahead 51.7 percent to 48.3 percent in the Monday count; the Associated Press had not called that vote.
- Google co-founders Sergey Brin and Larry Page had begun moving away from California before the proposed tax’s January 1, 2026, residency cutoff.
- Meta disclosed that Mark Zuckerberg had agreed to remain in California for eight years, except in certain unforeseen circumstances, under a deal involving non-voting shares.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
