California voters reject Proposition 40, a one-time wealth tax on billionaires
The measure would have taxed billionaires' net worth at 5%, and it failed by about 52.8% of votes cast against it.
Latest · Nov 10 Proposition 40, the one-time 5% billionaire wealth tax, failed, with about 52.8% of votes cast against it.
California voters rejected Proposition 40, a proposed one-time 5% tax on the net worth of any Californian worth more than $1 billion. With all precincts reporting as of Monday evening, 52.8% of voters opposed the measure, according to the secretary of state. That is about 5.9 million votes. Gov. Gavin Newsom opposed the measure. In a June Substack post, he said the revenue would go almost entirely to health care and nothing would go to housing, child care, public safety or public universities. He still supports a national wealth tax on people with a net worth over $100 million. The California Teachers Association, the California Medical Association and firefighters' groups also opposed the measure. Tech executives spent heavily to defeat it. Google co-founder Sergey Brin spent over $100 million of his own money to help defeat the proposal. The measure would have taxed billionaires living in California on or before January 1, 2026, and opponents had warned that it could drive wealthy residents out of the state.
The result came during a Democratic-leaning election in which several progressive candidates won, including Nithya Raman, who was elected Los Angeles mayor.
Key points
- Proposition 40 would have imposed a one-time 5% tax on billionaires' net worth.
- About 52.8% of voters opposed the measure.
- Gov. Gavin Newsom and tech executives spent heavily against it.
Read the original reporting (1)
Earlier coverage
- California voters reject one-time tax on billionaire wealth
California voters rejected a proposed one-time 5% tax on billionaire wealth. The measure would have applied to people who were state residents on Jan. 1, 2026, with payments spread over five years. Supporters, including Sen. Bernie Sanders, said the tax could help offset Trump administration cuts to healthcare and food assistance. Gov. Gavin Newsom opposed it, arguing the state should address wealth inequality without driving billionaires away. Some of the state's wealthiest residents had warned they could leave over the proposal. Voters were also weighing Proposition 42, a separate measure backed by tech billionaires to block new taxes on personal property. It was leading, and supporters of the wealth tax have vowed to keep pushing.
Pacific Research Institute senior fellow Wayne Winegarden said concerns that the tax could expand beyond billionaires and cost the state budget revenue may have hurt its support. California already loses taxpayers to other states; Los Angeles County led the country in taxpayer losses, with a net 17,496 tax filers and nearly $1.9 billion in income leaving.
Why it mattered: California has one of the largest billionaire populations in the U.S. and relies heavily on high earners for its budget, so the outcome affects a major state economy. The debate also reflects a broader national question about whether tax policy pushes wealth to other states.
＋ Add ActiveNews24 on GoogleSee more of our stories in Google’s Top Stories.
Summarized with AI from the sources above and reviewed before publishing.
