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California voters reject new tax on billionaires, a blow to the left
NBC News • • general
Key Points:
- California voters rejected Proposition 40, a ballot measure proposing a one-time 5% tax on billionaires' assets to fund healthcare, marking a setback for progressives advocating the tax.
- The measure faced strong opposition from prominent Democrats, unions, and advocacy groups, who argued it could drive wealthy residents out of the state and harm broader tax revenues.
- Supporters included Sen. Bernie Sanders and Rep. Ro Khanna, but opponents vastly outspent them on advertising, with a 250-to-1 spending advantage in late October.
- The opposition coalition included influential groups like the California Teachers Association and California Medical Association, funded by billionaires such as Sergey Brin and the California Business Roundtable.
- Proposition 40 was unique as the first billionaire tax proposal in the U.S., but many progressives opposed it due to its one-time nature and focus solely on healthcare funding.
