2 minPolitics
California Voters Reject 5% Billionaire Wealth Tax in Prop. 40
California voters rejected Proposition 40, an initiative that would have imposed a one-time 5 percent tax on the personal assets of billionaires. Most of the revenue was to go to health care.
California voters rejected Proposition 40, an initiative that would have imposed a one-time tax of 5 percent on the personal assets of billionaires. According to the results of the November 9, 2026 vote, 52.8 percent of voters voted "no" and 47.2 percent voted "yes." The Associated Press called the victory for opponents of the initiative on Monday.
The initiative would have been the first billionaire wealth tax in the country. Most of the proceeds were planned to be directed to the health care system. Supporters emphasized that such a tax would raise significant funds for the state's needs while affecting only the wealthiest residents.
Politicians, the teachers' union and other influential groups spoke out against the initiative. Opponents argued that the tax would harm the state's economy and deprive the ultra-wealthy of incentives to invest and do business in California. In the fall, protests against the initiative took place in various cities, including La Palma.
The rejection of Prop. 40 is seen as a defeat for the progressive political agenda. At the same time, on the same ballot, voters approved Prop. 38, which allows the state to issue $8.4 billion in bonds. The funds will go to research in immunology and immunotherapy for chronic diseases.
The full economic impact of the rejected tax is currently unknown. It is also unclear whether supporters of the initiative will attempt to bring it back in a different or amended form.
Source: nytimes.com
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