# Newsom breaks with socialists over billionaire tax as California voters appear poised to reject it

- URL: https://talkfuse.com/story/newsom-breaks-with-socialists-over-billionaire-tax-as-california-voters-appear-poised-to-reject-it/
- Published: 2026-11-04T19:51:24+00:00
- Updated: 2026-11-05T04:33:24+00:00
- Original publisher: Fox News (publisher lean: Right)
- Original article: https://www.foxnews.com/politics/newsom-breaks-socialists-over-billionaire-tax-california-voters-appear-poised-reject
- Topics: Americas, Elections, Politics, World

## Key points

- California’s proposed 5% billionaire tax appeared headed for defeat.
- The DSA supported it; Governor Newsom opposed it.
- Most proceeds were earmarked for healthcare.

## Summary

California voters appeared likely to reject Proposition 40, a proposed one-off 5% tax on billionaires’ wealth, according to results reported on Wednesday afternoon. The measure became a point of disagreement among Democrats: the Democratic Socialists of America backed it, while Governor Gavin Newsom opposed it, citing concerns about the state’s competitiveness and the initiative’s design.

The tax would have covered assets including businesses, securities, art and intellectual property, with exemptions for some pensions, property and retirement accounts. The DSA said it targeted about 250 Californians with roughly $2 trillion in combined wealth and could help address a projected $100 billion federal funding shortfall for Medi-Cal; the proposal allocated 90% of proceeds to healthcare and 10% to education, food assistance and administration. Critics, including economist Richard Stern, argued it could encourage people and businesses to leave California, while Newsom said opposition came from several groups, including teachers, firefighters and labour organisations.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.