California voters reject tax on net worth of billionaires

California voters have rejected Proposition 40, a proposed first-of-its-kind tax on billionaires’ net worth. Its defeat is a victory for Democratic leaders who opposed the measure, including Governor Gavin Newsom, while leaving unresolved the debate over taxing the ultra-rich to help fund public services.

The proposal would have imposed a one-off 5% tax on Californians worth more than $1 billion, with most proceeds intended to offset federal healthcare funding cuts and 10% allocated to education and food assistance. The campaign against it raised about ten times as much as supporters, including more than $100 million from Google co-founder Sergey Brin; the opposing committee raised over $333 million. The article says younger voters were more supportive, while roughly seven in ten voters aged 65 and over opposed it.