California voters decide on landmark 5% billionaire wealth tax

Summarised from 6 outlets · 8 reports · Updated 3 Nov, 21:09 · Archive

California votes on Proposition 40, a one-time 5% tax on billionaires' net worth to fund healthcare.

California voters are deciding the fate of Proposition 40, which would impose a one-time 5% tax on the net worth of Californians exceeding $1 billion. Most of the revenue would be directed towards replacing federal funding cuts to healthcare. If approved, California would become the first state in the nation to tax billionaires' net worth.

According to a California Post poll conducted by McLaughlin & Associates, support for the measure has weakened significantly. The poll showed 52.6% of voters opposed Proposition 40, while 34.5% supported it and 11.5% remained undecided.

Senator Bernie Sanders has framed the proposal as a crucial step in addressing wealth inequality. In an interview with KCRA, Sanders argued that West Coast billionaires had become $500 billion richer in the past year and criticised their reluctance to fund healthcare. "They are doing phenomenally well and really it is quite disgusting, to my mind, that they think it's more important that they hang on to their $200 billion rather than make sure the kids of California have health care," he said.

Pollster John McLaughlin offered a different explanation for the measure's weakness, suggesting voters distrust state lawmakers on taxes rather than opposing higher taxes on billionaires in principle. "Voters just don't trust Sacramento politicians when it comes to taxes," he said.

Governor Gavin Newsom has warned that the measure could prompt California's wealthiest residents to leave the state, potentially damaging the tax base. Multiple outlets report that billionaires are already considering their options, with some including Google co-founders Sergey Brin and Larry Page starting to cut ties with California after the measure was unveiled. Mark Zuckerberg said he would stay in California for eight years and negotiated a deal with Meta to help him pay the tax without losing ownership of the company.

The campaign against Proposition 40 has become one of the most expensive ballot fights in California history, raising roughly ten times as much as the campaign supporting it. Google co-founder Sergey Brin has spent more than $100 million opposing the measure, which could cost him an estimated $13.3 billion if approved. Much of the opposition funding has come from tech moguls and venture capitalists.

CNBC reports that a competing ballot measure, Proposition 42, could act as a "poison pill" against the billionaire tax if it receives more votes. Proposition 42 would permanently ban any statewide tax on property of all Californians. Tax experts cited this as a potential roadblock to Proposition 40's passage.

How it is being reported

• Proposition 40: How California could become the first US state to tax Billionaires' wealthProposition 40 would impose a one-time 5 per cent tax on Californians with net worths exceeding $1 billionIndependent World · 3 Nov, 15:42
• The 'poison pill' ballot measure that could kill the California billionaire taxThe strongest challenge to California's billionaire tax could be a competing ballot measure that bans state taxes on retirement accounts, say tax experts.CNBC · 3 Nov, 14:46
• Californians vote on ballot initiative to impose one-time tax on billionairesThis Tuesday, Californians are voting on a landmark plan to impose a one-time tax on billionaires to fund the state's healthcare system. We take a closer look. Also on the show: global oil prices fell sharply on the eve of the US midterm elections. This came after Iran said it was holding intensive talks through mediators towards negotiating peace and signalled that it was ready to reopen the Strait of Hormuz if the US accepted its conditions. Both Brent and WTI fell by around 8 percent.France 24 · 3 Nov, 13:51
• Californians vote on billionaire tax to replace federal cuts in healthcare fundingCalifornia could become the first US state to tax the net worth of billionaires Tuesday under a ballot measure that has divided liberal leaders nationally and triggered one of the most expensive ballot fights in state history as the ultra-rich scramble to figure out whether they would pay the tax or flee. Proposition 40 would impose a one-time 5% tax on the wealth of Californians whose net worth exceeds $1 billion, with most of the revenue dedicated to replacing federal funding cuts to healthcare.France 24 · 3 Nov, 10:49
• Could California actually become the first state in America to tax billionaires?California voters are considering a first-in-the-nation measure to tax the net worth of billionairesIndependent World · 3 Nov, 09:09
• Is the Golden State about to kill its golden geese? Today California votes on whether to impose a punitive tax to grab 5pc of the entire assets of its 250 billionaires. So could Labour's class warriors do the same here?Getting stinking rich used to be a big part of the American Dream, but try telling that to the protesters waving placards at rush-hour traffic outside the main Tesla showroom in Silicon Valley last week.Daily Mail · 3 Nov, 01:07
• I’m a wealthy Californian. The billionaire tax is a win for everyone | George ZimmerThe measure would ease inequality and bolster healthcare – without draining our coffers or triggering a billionaire exodus On Tuesday, California voters will decide whether to enact Proposition 40 , a one-time, 5% tax on the net worth of about 250 California billionaires . In recent months, a number of California billionaires and their apologists in the media and in government have come out swinging against the ballot measure. I’m not a billionaire, but I’m a Californian wealthy enough to know that they have no valid reason to fight the proposition. For multimillionaires like me, paying a 5%…Guardian Business · 2 Nov, 12:00
• Bernie Sanders gives blazing interview as support for California billionaire tax plummets: ‘Disgusting’Sen. Bernie Sanders is taking aim at California’s ultra-wealthy, arguing that billionaire spending is sinking Proposition 40.New York Post · 1 Nov, 20:27

In this story: Bernie Sanders · Sergey Brin · Gavin Newsom · Mark Zuckerberg · Larry Page · California · Google

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