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California voters officially reject controversial billionaire tax in setback for progressive agenda
California voters rejected Proposition 40, a proposed one-off 5% tax on billionaires, in a defeat for supporters seeking new funding for public services. The result also leaves California without the measure’s proposed source of revenue for healthcare and education, while opponents argued it could harm the state’s economy.
The Associated Press called the vote 52.8% against and 47.2% in favour. Support was strongest in San Francisco County, at 56.2%, and Los Angeles County, at 55%; Orange and San Diego counties voted against it. The article says Sergey Brin spent nearly $102 million backing an opposition group, and that the measure could have raised about $100 billion. SEIU-UHW leaders said they may pursue another billionaire tax for the 2028 election if healthcare problems remain unresolved.
In short
- California voters rejected a proposed 5% billionaire tax.
- Proposition 40 lost by 52.8% to 47.2%.
- Union leaders may propose another tax measure in 2028.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters could argue that a one-off levy on the very wealthiest Californians would raise substantial funds for healthcare and education, helping address urgent public needs without placing the burden on ordinary taxpayers. They may see it as a fair contribution from those most able to pay, and as a way to make public services less vulnerable to funding shortfalls.
The case against
Opponents could argue that a large, one-off tax on billionaire wealth risks prompting people and investment to leave California, potentially weakening the economy and reducing future tax revenues. They may also question whether the projected revenue would be realised or spent effectively, and favour more predictable ways to fund healthcare and education.