RismadarVoice Reporters
November 10, 2026
Voters in California have rejected a proposal to impose a one-time tax on billionaires, following an expensive campaign that exposed divisions among Democrats over taxation and public spending.
The Associated Press projected on Monday that Proposition 40 had failed, with approximately 53 per cent of voters opposing the measure and 47 per cent supporting it.
The proposal sought to impose a one-time five per cent tax on the assets of California residents whose wealth exceeded $1 billion, with certain exemptions.
It would have applied to eligible individuals who were California residents as of January 1, 2026.
Under the proposed arrangement, 90 per cent of the revenue would have supported healthcare services, while the remainder would have funded education, food assistance and related administrative expenses.
Supporters estimated that the tax could generate approximately $100 billion, although independent assessments questioned whether that amount could be realised.
The proposal attracted support from Senator Bernie Sanders, Representative Ro Khanna, the California Democratic Party and several labour organisations.
Supporters argued that additional revenue was necessary to protect healthcare services and address economic inequality.
However, the measure faced opposition from outgoing Governor Gavin Newsom, Governor-elect Xavier Becerra, business groups and several organisations traditionally aligned with Democrats.
Opponents warned that taxing accumulated wealth could encourage wealthy residents to relocate, potentially reducing future tax revenue and investment.
The campaign also attracted substantial financial contributions from wealthy individuals, including Google co-founder Sergey Brin.
According to CalMatters, wealthy opponents contributed approximately $378 million to campaigns against the proposal, considerably exceeding the resources available to supporters.
The disagreement highlighted competing views over how California should finance public services while maintaining its attractiveness to businesses and investors.
Two related ballot measures, Propositions 41 and 42, were also introduced to restrict certain future taxes and potentially prevent the billionaire tax from taking effect.
Despite the defeat, supporters indicated that they would continue pursuing proposals to increase taxes on wealthy residents.
The Service Employees International Union-United Healthcare Workers West, which sponsored Proposition 40, said it could pursue another initiative in 2028.
The result leaves California without the proposed wealth tax while keeping the broader debate over taxation, healthcare funding and economic inequality unresolved.
