Vote: Californians reject billionaire tax

California residents have voted down a proposal for a billionaire tax, known as Proposition 40, during a recent referendum. The measure, labeled "Proposition 40," failed to secure the required majority with only 47.2% of the votes, according to the Associated Press, which based their report on early vote counts. Billionaires like Google co-founder Sergey Brin spent over $300 million on a campaign against the wealth tax, saturating the TV airwaves with their advertising.

Under the proposal, all Californians with a net worth of at least one billion dollars (approximately $890 million euros as of January 1, 2026) would be required to pay a one-time 5% tax on their wealth. The funds were intended primarily to support healthcare in the democrat-run state, as it faced funding gaps due to the absence of subsidies from the Republican federal government in Washington.

Proponents of the billionaire tax estimated it could have generated around $100 billion. Researchers from Stanford University in Silicon Valley, however, predicted the revenue would be closer to $30 billion.