California voters have decided against Proposition 40, which aimed to impose a one-time 5% wealth tax on billionaires. The measure was rejected with 53.8% voting against it. Proponents believed it could generate significant revenue for healthcare programs, while critics, including Governor Gavin Newsom, warned it might drive billionaires out of the state and harm the economy. The failure of this measure is seen as a setback for advocates of wealth taxes in the U.S.
Key facts
- Proposition 40 was rejected with 53.8% voting against it.
- The proposed tax would have imposed a 5% levy on wealth exceeding $1 billion.
- Revenue from the tax was intended for Medi-Cal and healthcare programs.
- Six Nobel Prize-winning economists supported the measure.
- Governor Gavin Newsom opposed the tax, citing economic concerns.
A short AI summary in our own words. The reporting belongs to Washington Examiner; we don't reproduce it.