The proposed one-time 5% wealth tax on the state’s 240 billionaires was intended to fund healthcare, education, and food assistance
California voters have rejected a proposal to introduce the first wealth tax of its kind in the US, targeting billionaires’ fortunes, according to Decision Desk HQ projections released on Monday.
The measure, known as Proposition 40, proposed a one-time tax of 5% on most assets held by California residents with a net worth exceeding $1 billion. At least 90% of the proceeds would have gone toward state-funded healthcare programs, including expanded Medi-Cal coverage for low-income residents, people with disabilities, and the elderly.
The measure was proposed by the SEIU United Healthcare Workers West union, which hoped to raise around $100 billion over five years to offset cuts in federal funding for healthcare programs. Union President Dave Regan said the group will put the tax back on the ballot in 2028 if the Californian authorities fail to find another way to make up for the finance shortfall.
The proposition was put to a statewide vote on November 3, alongside federal and local elections. According to Decision Desk HQ, nearly 53% of voters opposed the measure, with 84% of ballots counted.
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