Abstract:
DDHQ predicts on the Proposition 40 originally planned to impose a one-time 5% wealth tax on the assets of billionaires living in California in early 2026, with most of the tax revenue used to replenish funds for the medical system. Data showed that after about 71% of the votes were counted, only 46% of voters supported the proposal and 54% opposed it.
The failure of the proposal dealt a major blow to related attempts to tax huge wealth across the United States. Supporters had hoped that California would provide a model for similar movements in other parts of the country. But the proposal faced opposition from a coalition that included tech tycoons, Democratic Gov. Gavin Newsom and California’s Planned Parenthood affiliate, and ultimately failed to pass.
The opposition has raised more than US$300 million, and the main organization "Building a Better California" is funded by Google co-founder Sergey Brin and other ultra-high-net-worth individuals.
The tax proposal was first proposed by a health care union more than a year ago as a hedge against budget cuts at the federal level. Federal cuts could close hospitals and leave millions of Californians without health insurance. The proposal has the support of a number of progressive politicians, including Vermont Senator Bernie Sanders and Congressman Ro Connor, whose district covers Silicon Valley.
As the vote ended in California, Connor said at a press conference: "Billionaires must be taxed. We will get there, we will succeed, and we can defeat capital."
The proposal has sparked divisions within the Democratic Party and among labor groups.
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