California voters rejected a wealth tax on the state's billionaires
California voters rejected Proposition 40, a proposed one-time 5% tax on residents with net worth of at least $1 billion, with 52.8% voting against and 47.2% in favor, according to the Associated Press. The measure had sought to raise money for health care and other programs.
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Supporters, including Sen. Bernie Sanders and Rep. Ro Khanna, argued California’s roughly 250 billionaire residents could generate about $100 billion. They said the revenue would help offset federal funding cuts to health care and nutrition assistance. The tax would have been the first billionaire tax enacted in the United States, NBC News reported.
NBC News said the proposal split Democrats and faced a barrage of attack ads. Opponents argued it could drive wealthy residents from California, reducing broader tax revenues. CBS News reported that opposition group Building a Better California had raised more than $250 million for the campaign as of Oct. 28.
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Reporting behind this story
- Los Angeles Times — Billionaire tax Prop. 40 was officially rejected in California
- NBC News — California voters reject new tax on billionaires, a blow to the left
- CBS News — California voters reject Prop. 40 billionaire wealth tax, CBS News projects
- The New York Times — California Voters Reject Prop. 40 Billionaire Tax Measure
- CalMatters — California voters reject Prop. 40 billionaire tax
- NBC Los Angeles — California voters projected to reject Prop 40 billionaire tax