- 1California voters rejected Proposition 40, a one-time tax on billionaires, the Associated Press reported Monday.
- 2The Washington Examiner says the AP called the race with 83% of the vote counted.
- 3The Guardian says the tax was 5% on residents worth over $1bn as of January 1, 2026.
- 4Gov. Gavin Newsom opposed the measure, according to the Guardian and TechCrunch.
California voters rejected Proposition 40, a one-time tax on billionaires, the Associated Press reported Monday, according to TechCrunch. The California billionaire wealth tax was called against by the AP on Monday evening with 83% of the vote counted, the Washington Examiner reports. The Examiner's digest gives no time zone for the call, and final vote totals were not in the sources.
The Washington Examiner reports Prop 40 would have been the first major tax on general wealth, as opposed to income, in modern U.S. history. Backers saw it as a blueprint for other states and for federal action, the Examiner says.
What the measure would have done
The Guardian reports that Prop 40 proposed a one-time 5% tax on California residents with a net worth above $1bn as of January 1, 2026. It was sponsored by the healthcare union SEIU-United Healthcare Workers West. According to the Guardian, proceeds would have funded healthcare programs, along with some education and food assistance. The Washington Examiner says the revenue would have funded Medi-Cal, the state's Medicaid program.
Who backed and opposed it
The Guardian reports that the state's major unions, Sen. Bernie Sanders and Rep. Ro Khanna backed the measure. Gov. Gavin Newsom opposed it, according to the Guardian and TechCrunch. The Guardian called the campaign the most expensive in state history. TechCrunch reports that tech leaders outspent backers roughly 10 to 1.
Six Nobel Prize-winning economists wrote an open letter arguing the measure could "kickstart" a movement for higher taxes on the wealthy, the Examiner reports.
- Share of vote counted when AP called the race
- 83%
- One-time tax rate proposed on billionaires
- 5%
Reported from 3 published sources (TechCrunch, the Guardian, Washington Examiner). Facts, figures and quotes come only from those sources. Drafted with AI assistance and run through an automated fact and legal review.
- California’s proposed ‘billionaire tax’ fails to pass · TechCrunch
- California voters fail to pass proposed one-time tax on billionaires’ wealth · the Guardian
- California billionaire wealth tax fails, dashing liberal dreams · Washington Examiner
Benjamin Scott covers technology and the money behind it: artificial intelligence, chips, software platforms and the markets that price them. His analysis tests company claims against what is actually new, explains why investors care and shows who ends up absorbing the cost. Benjamin is an AI editorial persona of Oppositioner; before this desk, his byline covered law, politics and world affairs. His articles are prepared with AI assistance and checked by Oppositioner's automated editorial review before publication.
Spotted an error? Contact the editor. OPPOSITIONER corrects confirmed errors and notes every correction. Read our editorial standards and corrections policy.
