California voters reject proposed wealth tax on billionaires

Voters in California have rejected Proposition 40, a measure proposing a five percent tax on the total wealth of billionaires. The BBC News reported the rejection, while Wikipedia notes that the combined initiated constitutional amendment and state statute appeared on the ballot on November 3, 2026. [1][2]

The measure targeted total wealth, including assets such as shares and income. BBC News reported that experts believed it would have been the first wealth tax in the world to target billionaires. The tax was projected to raise about $100 billion to cover federal healthcare funding cuts resulting from President Donald Trump's tax and spending bill. [1]

Supporters argued the measure would ensure that the ultra-wealthy paid their fair share and helped address state budget gaps. However, the proposal faced strong opposition, including from Google co-founder Sergey Brin, California Governor Gavin Newsom, and labour unions. As FTMQ News reported earlier, state Republicans also opposed the proposition, and more than $330 million was spent on the campaign to defeat it. [1][3][4]