Summary
California voters appeared to reject Proposition 40, a proposed one-time 5 percent tax on residents with net worth above $1 billion, according to Associated Press projections. With about 60 percent of votes counted, “no” led 55.6 percent to 44.4 percent; the proposal’s supporters said it would raise $100 billion for healthcare and other programs.Key Facts
- Proposition 40 would have imposed a one-time 5 percent tax on Californians whose net worth exceeded $1 billion.
- The proposal was projected to lose, with “no” ahead by 55.6 percent to 44.4 percent when about 60 percent of votes had been counted.
- Supporters said the tax would raise $100 billion, with most of the money earmarked for healthcare and additional funds for education and food assistance.
- Senator Bernie Sanders and other progressive politicians supported the measure as a response to economic inequality.
- California Governor Gavin Newsom opposed the measure, arguing that wealthy residents and technology entrepreneurs could leave the state.
- Billionaires, including Google cofounder Sergey Brin, spent more than $250 million campaigning against the proposal.
- Democrats said the tax would help offset federal funding cuts in President Donald Trump’s One Big Beautiful Bill.
- Senator Ron Wyden said Democrats would continue efforts to make billionaires pay their fair share.
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