California voters rejected Proposition 40, a proposed one-time tax of 5% on the wealth of about 200 of the state’s richest residents. The Associated Press projected the measure’s defeat on November 9, six days after the November 3 election, while ballots were still being counted.
Supporters estimated the levy could raise about $100 billion, with most of the proceeds directed to healthcare. The proposal was billed as a way to fund the state’s public healthcare system, which the campaign said had been squeezed by federal budget cuts.
Supporters and opponents debated the tax’s economic impact
Opponents argued that taxing billionaires’ wealth would prompt some of them to leave California, taking future tax revenue with them. The campaign against the measure included Google co-founder Sergey Brin, and opponents spent hundreds of millions of dollars fighting it, according to the source account.
Governor Gavin Newsom, who was nearing the end of his term, said he would vote against Proposition 40. The proposal drew attention beyond California as a test of support for wealth taxes amid concerns about widening inequality.
With roughly 60% of ballots counted on the Wednesday after Election Day, the “No” side led 55.6% to 44.4%, according to CalMatters. The later projection confirmed the measure had failed, rather than representing a final result at the time of that early count.
Nicole French