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Billionaire tax Prop. 40 was officially rejected in California
Los Angeles Times • • nation
Key Points:
- California voters rejected Proposition 40, a one-time 5% tax on billionaires' assets aimed at offsetting federal healthcare funding cuts, with roughly 53% voting against it.
- The measure faced strong opposition funded by billionaires like Sergey Brin, who, along with other wealthy individuals, invested hundreds of millions of dollars in campaigns to defeat the tax.
- Opponents argued the tax would harm California's economy and fiscal stability, while supporters contended it was necessary to fund healthcare, education, and food assistance amid looming federal funding cuts.
- Despite the defeat, proponents, including the Service Employees International Union, plan to pursue a billionaire tax again in 2028 if the state fails to address public health funding.
- The debate over taxing the ultra-wealthy continues nationally, with Senators Bernie Sanders and Ro Khanna advocating for a similar federal tax, though such legislation may face constitutional challenges.
