California Voters Reject Prop 40 Billionaire Wealth Tax
The Facts
- California voters rejected Proposition 40, a one-time tax on the net worth of billionaires, with The Associated Press calling the result Monday at 52.8% opposed and 47.2% in favor. The race took nearly a week to settle as mail ballots were counted.
- Proposition 40 would have imposed a one-time 5% tax on Californians with a net worth above $1 billion, sending 90% of the revenue to health care programs and the remaining 10% to education, food assistance and administering the tax.
- Billionaire opponents donated $378.4 million to defeat the measure, while the Yes campaign raised $33.5 million. Google co-founder Sergey Brin gave about $102 million to Building a Better California, a committee he founded to fight the tax.
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The Spin
Right narrative
Voters made the right call in a state already carrying the nation's heaviest income tax burden. Driving out the very earners who bankroll schools, health care and public safety would have blown a hole in the budget nobody could patch. Shutting the door on future asset grabs simply protects the jobs and innovation that keep California's economy ahead.
Left narrative
This has handed the holders of the biggest fortunes in America a victory bought with a flood of advertising money. The wealth-flight scare story never held up, since the real motive for fighting a modest tax on extreme riches is simply the refusal to pay. Ordinary families keep footing the bill for health care while untaxed fortunes compound untouched.
