California Voters Reject Billionaire Wealth Tax

California voters rejected Proposition 40, a one-time 5% tax on billionaires' net worth. The measure was sponsored by the healthcare union SEIU-UHW.

• $100 billion over five years was the backers' revenue estimate.
• $102 million came from Google co-founder Sergey Brin to oppose it.
• 54.3% of voters approved Prop. 42, barring new personal property taxes.
• 82% of voters rejected Prop. 44, another union-backed measure.

Why it matters: Supporters said the tax would backfill federal healthcare funding cuts. About 200 people would have owed it.

• Gov. Gavin Newsom opposed it, warning billionaires could leave the state.
• Professor Thad Kousser said the loss would likely be framed nationally as a setback.

How 57 sources split on this story

Where they split: Coverage differs on whether voters rejected wealth taxes outright or a measure weakened by divided Democrats and heavy opposition spending.

What’s next: SEIU-UHW says it may return with a billionaire tax in 2028 if lawmakers do not act.

• Union president Dave Regan faces misconduct charges, which he denies.
• Reported margins vary while ballots are still being counted.
• What is the final vote margin once counting ends?
• Will the Legislature pursue other funding to replace the lost federal healthcare money?
• Will SEIU's national leadership suspend or remove Regan?