California Voters Reject Proposed One-Time Tax on Billionaires’ Wealth

By Staff, Agencies

California voters have rejected a ballot measure that would have introduced a one-time tax on the wealth of billionaire residents, according to projections by Decision Desk HQ [DDHQ]. The proposal would have marked a first of its kind in the United States.

With approximately 76% of ballots counted as of 8:51 p.m. EST, around 54% of voters opposed Proposition 40, while 46% supported it.

The proposed measure sought to impose a one-time tax of 5% on the wealth of billionaires living in California. Most of the revenue generated would have been allocated to state healthcare programs, with the remaining funds directed toward food assistance and education.

The proposal received backing from the California Democratic Party, the American Federation of Labor and Congress of Industrial Organizations [AFL-CIO], and the Teamsters unions. However, California Governor Gavin Newsom opposed the measure.

Although Newsom has expressed support for introducing a federal tax on billionaires, he criticized the California proposal for directing nearly all its revenue toward healthcare while overlooking other public priorities.

In a June Substack post, the governor argued that the plan allocated no funding for housing, childcare, public safety workers or state universities.

Opposition to the measure also received substantial financial backing from wealthy individuals, including several Silicon Valley executives. Billionaires contributed more than $333 million to the nonprofit organization Building a Better California, which campaigned against the proposal.

Meanwhile, California’s Legislative Analyst’s Office estimated that taxing the wealth of approximately 200 billionaires could have generated tens of billions of dollars in revenue for the state.