California voters cast ballots on a measure to tax billionaires' net worth
California voters considered Proposition 40 Tuesday, which could make the state the first to tax billionaires’ net worth. The measure would impose a one-time 5% tax on Californians with net worth above $1 billion, with most revenue intended to replace federal health-care funding cuts. The proposal has divided liberal leaders and become one of the state’s most expensive ballot fights.
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California voters cast ballots Tuesday on Proposition 40, a measure that could make the state the first in the nation to tax billionaires’ net worth. It would impose a one-time 5% tax on Californians whose net worth exceeds $1 billion, with most proceeds intended to offset federal reductions in health-care funding.
The proposal has split liberal leaders nationally and prompted one of the most expensive ballot fights in state history, as wealthy residents consider whether to pay the tax or leave, according to the Associated Press. The measure’s backers are led by the labor union SEIU United Healthcare Workers West. The union estimates California will lose $100 billion in federal health-care funding over five years. Lorena Gonzalez, president of the California Federation of Labor Unions, said the tax was needed to keep the health-care system safe.
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Verifier’s note
France 24 reports the proposed one-time billionaire tax and its healthcare-funding purpose, and PBS NewsHour reports the same event. The PBS NewsHour article identifies AP as its source, and France 24 repeats the same AP wording; Michael West Media’s result does not show the healthcare-funding claim.