California billionaire wealth tax vote still undecided

A one‑time 5 % tax on the net worth of Californians with assets over $1 billion remains too early to call as vote counting continues on Wednesday morning.

Proposition 40 would levy the tax to replace federal cuts to healthcare, with most revenue earmarked for that purpose. The measure has split liberal leaders nationally and sparked one of the costliest ballot battles in the state’s history.

Opponents, led by tech moguls and venture capitalists, have out‑spent supporters roughly ten‑to‑one, funding a political action committee that opposes the tax. Prominent billionaires such as Google co‑founders Sergey Brin and Larry Page have begun cutting ties with California, while Meta chief Mark Zuckerberg says he will stay for eight years and has arranged a deal to meet the tax without losing his ownership stake.

Supporters, including the SEIU United Healthcare Workers West, argue the tax is needed to offset an estimated €100 billion loss in federal healthcare funding over five years. However, some traditional Democratic allies, such as Planned Parenthood and the California Teachers Association, have joined the “no” campaign over concerns about revenue allocation and a possible exodus of wealthy taxpayers.

With almost 6 million votes still uncounted, the AP Decision Team will wait for further results before declaring a winner. Even if Proposition 40 passes, it could be nullified by either of two competing measures, Propositions 41 or 42, which aim to ban new taxes on financial assets.

Source: ABC News. Photo: Element5 Digital / Pexels.