California voters reject billionaire wealth tax proposal

California voters have turned down Proposition 40, a one‑time 5 % levy on fortunes above $1 billion.

The Associated Press called the result on Monday evening, 9 November, after vote‑counting continued due to the state’s mail‑in ballot system.

The “no” campaign, opposed by Governor Gavin Newsom and many Democratic leaders, out‑spent supporters by roughly ten to one, with tech figures such as Sergey Brin contributing more than $100 million and Irish entrepreneur Patrick Collison of Stripe pledging over $30 million.

Backers of the measure argued the tax would fund state priorities, chiefly healthcare, with the remainder earmarked for education and food‑assistance programmes.

Opponents warned the levy would drive billionaires and investment out of California. Reports said Brin and fellow Google co‑founder Larry Page began reducing their ties to the state, while Meta’s Mark Zuckerberg said he would remain for eight years and arrange a deal with Meta to meet the tax without losing his ownership stake.

Polling showed younger voters under 30 largely supported the tax, whereas about seven in ten voters aged 65 and over voted “no”. Half of households earning under $100 000 backed the proposal, compared with roughly six in ten higher‑earning households who opposed it.

The “Yes on 40” campaign indicated it may revisit a similar tax in 2028 if healthcare protections are not secured.

Source: Silicon Republic. Photo: Edmond Dantès / Pexels.