California voters rejected Proposition 40, a one-time tax on billionaires’ wealth, according to media projections on Monday. Campaigners had estimated the California billionaire wealth tax would raise about $100 billion, with most of the money going to healthcare.
With about 60 percent of votes counted, "no" led 55.6 percent to 44.4 percent for "yes", according to Al Jazeera. The projections are not official final results, and no certified tally was available in the sources reviewed. The projections were reported by AP, CNN and CBS, according to the outlines’ sourcing.
The measure would have imposed a one-time 5 percent tax on Californians whose net worth exceeds $1 billion, affecting around 200 of the state’s richest residents, according to Al Jazeera. Campaigners estimated the revenue at about $100 billion, a figure that has not been independently verified.
Billionaires including Google cofounder Sergey Brin spent more than a quarter of a billion dollars campaigning against the measure, according to Al Jazeera. Outgoing Governor Gavin Newsom came out against it. Opponents argued that it would drive ultrawealthy entrepreneurs out of the state.
Supporters, including Bernie Sanders and other progressives, championed the tax as a remedy for economic inequality and a model for the rest of the country. Democrats said it was needed to offset federal cuts in Trump’s One Big Beautiful Bill. Democrats also won majorities in both chambers of Congress in midterm elections. California had voted on a wealth tax three times earlier this decade and rejected it each time.
Economist Joseph Stiglitz said, according to Euronews, "Prop 40 put a tax on billionaire wealth on the ballot in the United States for the first time."
Reports differ on timing. Al Jazeera says the measure appeared headed for defeat on Tuesday, with about 60 percent counted. Euronews says that count was reached on Wednesday.
Incoming Senate Finance Committee Chairman Ron Wyden said in a November 4 statement that the committee will redouble efforts to make billionaires pay their fair share. Newsom is widely expected to run for the 2028 Democratic presidential nomination.
The sources do not include responses from Sanders or other supporters, from the billionaire donors, or from the Trump administration. Key details about the donor spending and the number of affected residents come from Al Jazeera alone.
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This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.