California voters reject billionaire wealth tax, CBS News projects
Summary
CBS News projects that California voters rejected Proposition 40, a proposed one-time tax on residents worth at least $1 billion. The measure divided Democratic-aligned groups and drew heavy spending from supporters and opponents; proponents said it would fund health care and other services, while opponents warned it could drive wealthy residents out of the state.Key Facts
- Proposition 40 proposed a one-time tax of 5% on the wealth of California residents worth at least $1 billion, excluding real estate and certain retirement assets.
- Supporters estimated the tax would raise $100 billion over five years, with 90% for health care and the rest for education, food assistance, and administration.
- Supporters said the tax could help offset federal health care cuts enacted in 2025 under H.R. 1, known as the One Big Beautiful Bill Act.
- The California Democratic Party and SEIU Healthcare Workers West backed the measure; Gov. Gavin Newsom, Katie Porter, and several major health and professional groups opposed it.
- Opponents argued that wealthy residents might leave California and reduce the state's future tax revenue.
- Building a Better California had raised more than $250 million to oppose the measure as of Oct. 28, according to the article.
- Propositions 41 and 42 would limit special taxes and could block Proposition 40 from taking effect if either received more votes.
- A Stanford University study estimated the measure might raise about $30 billion, rather than the $100 billion supporters projected.
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