California voters rejected a proposal to introduce a one-time tax on billionaires — Proposition 40. According to the Associated Press, about 53 percent voted against, and 47 voted in favor.
The measure provided for a one-time levy of 5 percent on the assets of state residents whose wealth exceeds 1 billion dollars as of 1 January 2026. The proceeds, according to supporters' estimates, could have amounted to about 100 billion dollars and would have gone mainly to healthcare programs, including Medi-Cal.
The initiative was actively promoted by trade unions and progressive politicians, including Senator Bernie Sanders. They saw it as a way to offset cuts in federal healthcare funding.
However, Governor Gavin Newsom came out against it. He warned that the tax would create an unfavorable climate for entrepreneurs and high-tech companies that already make a significant contribution to the state's economy.
Opponents raised an impressive sum — more than 300 million dollars. A key role was played by Google co-founder Sergey Brin, who personally contributed at least 132 million. The total spending on the campaign against Prop 40 made it one of the most expensive in California's history.
Despite Democrats' predominance among voters, arguments about a possible outflow of business and concerns for the economy appear to have prevailed. Support was noticeable in Los Angeles and San Francisco, but in most counties, including Orange, the measure lost.
Supporters have already stated that they do not intend to give up and may bring a similar initiative back to the ballot in 2028. But should we expect the debate over taxing the ultra-wealthy in the state to end there?
At the same time, there were other propositions on the ballot that could have influenced the outcome. The opponents' victory highlights a deep divide even within California's Democratic camp over issues of wealth redistribution.
