California voters fail to pass proposed one-time tax on billionaires’ wealth

California voters have rejected Proposition 40, which would have imposed a one-time tax on billionaires’ wealth. The result is a setback for efforts to tax the ultra-wealthy and could slow similar proposals in other states.

The measure proposed a 5% tax on people in California worth more than $1bn on 1 January 2026, with proceeds directed mainly to healthcare, as well as some education and food assistance. Its opponents, led by wealthy Silicon Valley figures, spent nearly $425m campaigning against it; Google co-founder Sergey Brin contributed at least $132m. Two competing ballot measures were also designed to block the tax if they received more votes than Proposition 40.