California voters defeat billionaire tax proposal that divided Democrats
California's billionaire tax proposal, Prop 40, was defeated by voters following a campaign marked by deep divisions among Democrats. Opponents successfully argued that the tax would drive wealthy residents out of the state, while proponents framed it as a necessary measure to address healthcare funding gaps.
Why it matters
This outcome highlights the political friction between progressive tax initiatives and concerns over economic competitiveness in high-tax states.
Midterms coverage: Live results | Stories around the country Stay connected: NPR Politics Podcast | NPR Politics newsletter | NPR app
California voters have rejected a proposal to charge billionaires a one-time 5% tax on most of their wealth, according to a race call by The Associated Press.
Proponents said the tax could raise $100 billion for healthcare. Led by a union that represents healthcare workers, the SEIU-UHW, advocates of the tax said the Republican-controlled Congress cut healthcare programs to give tax breaks to the wealthy, so it was time for the wealthy in California to fill the gap. The state has more than 200 billionaires, according to estimates, with some putting the number at a few hundred .
Opponents argued that the proposal, known as Prop 40, would just drive the wealthy out of California, costing the state revenue and harming its economy.
Headlinne story · 5 newsrooms
California Voters Reject Ballot Measure to Impose Wealth Tax on Billionaires
What every outlet reported, where they differ, and how each framed it →
Also covering this story
6 other newsrooms covered this event. We read each version separately.
California voters fail to pass proposed tax on billionaires’ wealth
Californians reject wealth tax for billionaires
California defeats biggest test of billionaire wealth tax in US, a win for Democrats
California’s proposed ‘billionaire tax’ fails to pass
Californians reject Prop 40 wealth tax for billionaires
Silicon Valley's billionaires won the tax battle. The war on wealth is just beginning.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in