California’s controversial billionaire tax looks headed for defeat

California’s proposed one-off tax on billionaires appeared headed for defeat, with Proposition 40 trailing 56% to 44% as about half the ballots had been counted. The result followed a costly, divisive campaign that split Democrats and raised concerns about whether wealthy business owners and jobs might leave the state.

Proposition 40 would levy a 5% tax on billionaires’ wealth. Supporters said it could raise $100 billion, mainly for healthcare, while the state’s Legislative Analyst’s Office estimated tens of billions over several years; opponents, including Google co-founder Sergey Brin, spent heavily to defeat it. Two rival measures could also invalidate Prop. 40: Proposition 42 was ahead by nine points, while Proposition 41 was narrowly trailing.