CALIFORNIA VOTERS REJECT ONE-TIME TAX ON BILLIONAIRES’ WEALTH

California voters have rejected a proposal to impose a one-time 5 per cent tax on residents worth more than $1 billion, following an expensive campaign that divided political leaders and healthcare groups.

The measure, known as Proposition 40, would have directed most of its proceeds towards replacing federal healthcare funding cuts. Another 10 per cent would have supported education and food-assistance programmes.

Supporters, led by the healthcare workers’ union SEIU United Healthcare Workers West, argued that the tax was needed to help cover an estimated $100 billion loss in federal healthcare funding over five years.

However, opponents warned that it could drive wealthy residents out of California and weaken a state budget that relies heavily on taxes paid by its richest residents.

Governor Gavin Newsom was among the Democratic leaders who opposed the proposal. Planned Parenthood and the California Medical Association also joined the opposition, raising concerns about how the money would be distributed and the potential consequences for state revenue.

The campaign against the measure raised roughly 10 times as much money as its supporters. Google co-founder Sergey Brin contributed more than $100 million to a political committee working to defeat it.

The committee, Building a Better California, raised more than $333 million and also backed other ballot measures designed to block the tax.

Supporters included Senator Bernie Sanders, who campaigned across California in the closing weeks before the vote.

Despite the defeat, the “Yes on 40” campaign said it could pursue another wealth-tax proposal in 2028 if healthcare services remained at risk.

The result was determined on Monday after days of counting mail-in ballots, which make up a large share of California’s votes.