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California voters reject Proposition 40, the billionaire wealth tax
Fox Business • • general
Key Points:
- California voters rejected Proposition 40, a proposed one-time 5% wealth tax on billionaires with net worths over $1 billion, with 52.8% voting against the measure.
- Governor Gavin Newsom opposed the measure, criticizing its focus on dedicating all revenue exclusively to healthcare and excluding other priorities like housing, childcare, public safety, and education.
- Major trade associations, unions, and wealthy tech executives, including Google co-founder Sergey Brin who spent over $100 million to defeat the measure, actively campaigned against Proposition 40.
- Opponents feared the tax could prompt billionaires to leave California, potentially harming the state’s economy, although some billionaires like Meta CEO Mark Zuckerberg pledged to remain.
- Supporters of the wealth tax have begun criticizing Newsom in key Democratic primary states for his opposition, signaling ongoing political debate over wealth taxation policies.
