California defeats biggest test of billionaire wealth tax in US, a win for Democrats

California voters have rejected Proposition 40, a first-in-the-nation ballot measure that would have imposed a one-time 5% tax on the net worth of residents worth more than $1 billion, dealing a significant blow to progressive efforts to tax concentrated wealth and handing a political victory to Democratic leaders who opposed the proposal. The Associated Press projected the measure's defeat after enough votes had been counted to determine that the "no" campaign had prevailed. The result marks the most significant test yet of a wealth tax in the United States, an idea long championed by progressive politicians as a way to raise revenue from the ultra-rich by taxing their investment wealth rather than only their income.What Prop 40 would have doneIf imposed Prop 40 would lead to imposition of a one-time 5% tax on the wealth of Californians with a net worth above $1 billion.