California’s proposed ‘billionaire tax’ fails to pass
California voters rejected Proposition 40, a proposed one-time 5% wealth tax on state residents with a net worth exceeding $1 billion. The measure, which faced opposition from Governor Gavin Newsom and various tech figures, aimed to fund public programs like Medi-Cal.
Why it matters
The failure of this measure reflects ongoing debates regarding wealth taxation, capital flight, and the role of state government in funding social services.
California voters have rejected Proposition 40, the state’s proposed one-time tax on billionaires, the Associated Press reported Monday . The measure failed after an expensive campaign that pitted labor unions against some of tech’s wealthiest figures. It was also opposed by Gov. Gavin Newsom.
Nic Carter lives about as far from Silicon Valley as you can get within the continental U.S. but his feelings about California’s proposed tax on billionaires couldn’t have been stronger.
Carter, a Floridian, and a general partner at the crypto-focused venture capital firm Castle Island Ventures, told TechCrunch before the vote that he thought the proposal — it was on the ballot during California’s midterm election last week — would actually have been a huge win for more fiscally conservative states like his own.
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