California Voters Defeat Proposed Billionaire Wealth Tax
A statewide ballot measure to impose a one-time 5% tax on residents with net worth over $1 billion was rejected by 52.8% of voters.
California voters turned down Proposition 40, a measure that would have levied a one-time 5% tax on individuals whose net worth exceeds $1 billion. The Secretary of State reported that 52.8% of the 5,909,899 voters who cast ballots on the issue voted against it, with results from all precincts finalized on Monday evening.
Governor Gavin Newsom, who publicly opposed the initiative, said his objection centered on the proposal’s allocation of almost all revenue to a single spending category.
"I’m voting no because this measure dedicates almost all of the revenue it raises to a single category of state spending," Newsom wrote in a Substack post. "There is nothing for housing, nothing for childcare, nothing for public safety workers who must answer 911 calls, and nothing for our public universities that have powered California’s economy for a decade."
Newsom added that he supports a national wealth tax on individuals with net worth over $100 million, but not the California-specific plan. The governor joined a coalition of trade associations and unions—including the California Teachers Association, California Medical Association, California Children’s Hospital Association and California Professional Firefighters—in opposing the measure. The coalition described the proposal as a "reckless experiment" for the state’s economy.
Opposition also came from several wealthy technology executives. Google co-founder Sergey Brin contributed more than $100 million to political action committees working to defeat the initiative. While some critics feared the tax could prompt billionaires to leave the state, others, such as Meta founder Mark Zuckerberg, said they would remain in California.
Supporters of Proposition 40 have begun airing advertisements in early-voting states, criticizing Newsom’s stance on the tax.