California tax proposal on billionaires heading for defeat

California's Proposition 40 appeared to be heading for defeat on Tuesday night after early election results showed the measure trailing. The New York Post reported that the proposal was trailing with 56 percent of voters opposing it and 44 percent in favor, with roughly half of the ballots counted shortly after 9:00 p.m. [1]

The ballot measure sought to impose a one-time five percent tax on the wealth of billionaires. The campaign surrounding the proposal sparked a battle costing more than $330 million to defeat the measure. The proposal caused Silicon Valley tech entrepreneurs to prepare to leave the state and created divisions among Democrats. [1][5]

Proposition 40 was one of 14 statewide propositions presented to voters during the election. France 24 previously reported that the revenue collected from the proposed tax was intended to fund the state healthcare system in California. Governor Gavin Newsom and state Republicans both opposed the measure, as FTMQ News reported earlier. [1][4][5]

The state of California entered the Union as the 31st state in 1850. The state maintains a diverse economy featuring major industries such as technology in Silicon Valley, entertainment in Hollywood, and agriculture across the Central Valley. California recorded a gross domestic product of $4.1 trillion in 2025. [3]