California voters consider proposition to tax billionaires’ wealth

California voters are considering Proposition 40, which would impose a one-off tax on the wealth of residents worth more than $1 billion. The proposal has split Democratic figures and groups: supporters say it could help replace federal healthcare funding cuts, while opponents warn wealthy residents may leave and weaken state revenues.

The tax would be 5%, and its backers estimate California will lose $100 billion in federal healthcare funding over five years. In a mid-October poll, 52% of likely voters opposed the measure and 46% supported it, reversing the figures from an early September poll. Even if voters approve it, either of two competing ballot measures could prevent it taking effect.