After a week of counting that finally settled the matter, California's voters have turned away a measure that would have asked its wealthiest residents to surrender five percent of their total fortunes, a levy meant to patch healthcare holes torn open by federal cuts. It is a familiar human tension made sharper here: a state of extraordinary riches wrestling with how much of that wealth should answer to the needs of everyone else. The verdict leaves the gap unfilled, and the argument about who should pay it has been set down only for now, to be picked up again when the next chance comes.
Californians Reject Prop 40 Wealth Tax on Billionaires, Ending Bid to Fund Healthcare Gaps
Federal healthcare funding cuts in California from President Trump's tax and spending bill are the gap the proposed tax was meant to backfill.
Nearly a week of counting to settle a $100bn question
Mark
So what exactly did Prop 40 ask for?
Mimi
A one-time 5% tax on the total wealth of Californians worth more than $1.1bn, counting assets like shares, not just income. The aim was about $100bn for healthcare.
Mark
Why healthcare specifically?
Mimi
Federal funding cuts from President Trump's tax and spending bill left gaps in California. Backers wanted the ultra-wealthy to help backfill them.
Luke
That $100bn is the expected figure, though. Nobody got to test it, because the measure failed.
Mimi
Fair. It's a projection of what the tax would have raised.
Mark
Who killed it, then?
Mimi
Billionaire opponents like Sergey Brin, who reportedly gave over $100m to a group funding counter-measures, plus Governor Newsom and labour unions. Democrats were divided too.
Luke
The Brin figure is attributed to the Los Angeles Times. And the reporting says the opposition caused the defeat in a broad sense, but it doesn't show how many voters changed their minds because of it.
Mark
What about the two other propositions?
Mimi
They would have effectively reversed it even if it passed, so the odds were stacked from the start.
Mark
Is this the end?
Mimi
Dave Regan, whose union led the push, says he'll try again in 2028.
Luke
A pledge isn't a plan. What a 2028 measure looks like is still unknown.
O Pulso
- A proposed one-time 5% tax on billionaires' entire wealth, aimed at around $100bn, collided head-on with a state where federal healthcare cuts had left real gaps to fill.
- Tech fortunes poured in: Sergey Brin reportedly gave over $100m to a group working to block the measure, and several billionaires moved away rather than face the bill.
- Governor Gavin Newsom warned of wealthy residents fleeing and taking their income tax with them, while labour split over the measure and Democrats argued among themselves.
- Two competing propositions on the same ballot would have undone the tax even if it had won, leaving supporters with few routes forward.
- The measure is dead for now, but union leader Dave Regan has vowed to bring a billionaire tax back to voters in 2028, and the healthcare shortfall has not gone anywhere.
After a week of counting that finally settled the matter, California's voters have turned away a measure that would have asked its wealthiest residents to surrender five percent of their total fortunes, a levy meant to patch healthcare holes torn open by federal cuts. It is a familiar human tension made sharper here: a state of extraordinary riches wrestling with how much of that wealth should answer to the needs of everyone else. The verdict leaves the gap unfilled, and the argument about who should pay it has been set down only for now, to be picked up again when the next chance comes.
It took nearly a week after the midterm vote for the count to confirm what many had suspected: California has rejected Proposition 40, a ballot measure that would have taxed the state's billionaires on their total wealth to help pay for healthcare.
The proposal asked for a one-time levy of 5% on anyone worth more than $1.1bn. Unlike an income tax, it would have reached assets such as shares. Around 200 billionaires live in the state, among them Mark Zuckerberg, Kim Kardashian and Oprah Winfrey. Supporters expected it to raise about $100bn, money meant to make up for federal healthcare cuts that followed President Donald Trump's sweeping tax and spending bill. For them, it was simply about the ultra-wealthy paying their fair share.
The opposition was fierce and well funded. Google co-founder Sergey Brin reportedly gave more than $100m to a political group financing measures that could block the tax, and some billionaires relocated to avoid it. Governor Gavin Newsom, nearing the end of his time in office, warned that the tax could drive wealthy residents away along with their income tax payments. Labour unions were also divided, and the proposal faltered amid tensions among Democrats.
Even had it passed, the measure faced obstacles: two other propositions on the ballot would have effectively reversed it.
Dave Regan, whose union led the push, blamed the campaign's confusion for the result, saying it had left people second-guessing what they knew was right. He has pledged to bring a billionaire tax back to voters in 2028. For now, the healthcare shortfall remains, and the argument over who should pay for it is far from settled.
It took close to a week after the midterm election for the count to settle the question, but California has now rejected Proposition 40, a ballot measure that would have taxed the state's billionaires on their total wealth to help pay for healthcare.
The proposal was a one-time levy of 5% on Californians worth more than $1.1bn (£800m). The tax would have reached beyond income to cover assets such as shares. About 200 billionaires live in the state, a group that includes Meta's Mark Zuckerberg, reality television star Kim Kardashian and media mogul Oprah Winfrey. Experts believe that, had it passed, it would have been the first wealth tax in the world aimed specifically at billionaires.
The money had a specific purpose. Supporters expected the tax to raise about $100bn, which they intended to use to make up for cuts to federal healthcare funding in California. Those cuts stem from President Donald Trump's sweeping tax and spending bill. Backers argued the measure would make sure the ultra-wealthy paid their fair share and would help fill holes in the state budget.
The opposition was fierce and well funded. Google co-founder Sergey Brin was among the loudest critics, and the Los Angeles Times reported that he gave more than $100m to a political organisation financing ballot measures that could block the tax. Other billionaire opponents also spent millions, and a handful moved out of California to avoid the possible bill.
The resistance was not limited to the very rich. Governor Gavin Newsom, whose time in office is coming to an end, opposed the measure, warning that it could push wealthy residents to leave and take their income tax payments with them. Labour unions also opposed it, and the proposal failed amid divisions among Democrats and within organised labour.
The measure also faced structural obstacles. Two other propositions on the same ballot would have effectively reversed it even if voters had approved it.
Dave Regan, president of Service Employees International Union-United Healthcare Workers West, whose union led the push, said on election night that the billionaires' campaign had sown "a lot of confusion and a lot of second-guessing among people who really in their hearts know what the right thing to do is". He pledged to bring a billionaire tax back to voters in 2028.
The stakes reflect California's unusual position. It has some 23 million registered voters and the largest economy in the United States, ranking fourth in the world. It is home to one of the highest concentrations of billionaires anywhere, and also one of the widest wealth gaps. For now the healthcare funding shortfall remains, and the next test of a billionaire tax is expected in 2028.
Citações Notáveis
The billionaires' efforts created a lot of confusion and a lot of second-guessing among people who really in their hearts know what the right thing to do is.— Dave Regan, president of SEIU-United Healthcare Workers West
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