California voters reject one-time tax on billionaire wealth
Supporters had said the 5% tax could raise tens of billions of dollars for healthcare, but some wealthy residents had threatened to leave.
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.
Key points
- The proposed tax was a one-time 5% levy on billionaire wealth, payable over five years.
- Los Angeles County led the country in taxpayer losses to other states.
- Proposition 42, which would block new personal property taxes, was leading.
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Summarized with AI from the sources above and reviewed before publishing.
