Californians reject Prop 40, the billionaire tax tech elites spent millions trying to stop
Supporters said the measure would have raised over $100 billion for state funds, but opponents feared it would have sparked a wealth exodus.
California residents have rejected a proposed 5% wealth tax on billionaires, despite a significant campaign funded by tech elites to block the measure. The ballot initiative, Proposition 40, aimed to raise over $100 billion for the state, with funds primarily intended for healthcare, education, and food assistance. However, the tax, which would have applied to taxpayers with assets exceeding $1 billion, faced opposition from Silicon Valley executives who collectively donated millions to defeat the proposal.
Notable donors included Google co-founder Sergey Brin, who contributed over $100 million. Concerns over potential tax exodus led several billionaires, such as Google's Larry Page and Meta's Mark Zuckerberg, to relocate or alter their holdings to avoid the tax. Despite backing from some political figures like Vermont Senator Bernie Sanders and predictions of revenue generation, the measure ultimately failed due to opposition measures designed to undermine it.
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