California voters have rejected Proposition 40, a ballot proposal that sought to levy a one-time 5% tax on the total wealth of the state's billionaires. The measure, which aimed to fund healthcare, would have applied to individuals with wealth exceeding $1.1bn (£800m), including assets such as shares and income.
The vote count, which took nearly a week after the midterm election, determined the rejection of the proposal. Had it passed, experts believed it would have been the world's first wealth tax specifically targeting billionaires. The tax was projected to raise approximately $100bn to offset federal funding cuts to healthcare in California.
The proposal faced significant opposition, including from Google co-founder Sergey Brin, California Governor Gavin Newsom, and various labour unions. Governor Newsom had expressed concerns that the tax could lead wealthy individuals to leave the state, potentially impacting income tax revenue. Dave Regan, president of Service Employees International Union-United Healthcare Workers West, who supported the measure, has pledged to seek a similar billionaire tax again in 2028.