California voters rejected a billionaire tax, The Associated Press determined on Monday. Proposition 40 would have imposed a 5 percent tax on personal assets of residents worth over $1 billion. The measure failed after a campaign used attack ads to sway voters, despite strong support for taxing the wealthy.
The outcome could hinder the wealth tax movement in California and across the country in future years.
California voters rejected a billionaire tax, The Associated Press determined on Monday, rebuking a measure that would have created the nation's first wealth tax by targeting the assets of residents with a net worth beyond $1 billion.
Under the tax measure, Proposition 40, the state would have imposed a one-time, 5 percent tax on the personal assets of billionaires and devoted most of the revenue to health care.
The Democratic voters who dominate the California electorate generally support the concept of making wealthy people pay higher taxes. But Democratic leaders were divided over the proposal -- Gov. Gavin Newsom opposed it while the California Democratic Party endorsed the tax. And some of the California billionaires who stood to pay the tax contributed heavily toward a campaign that slammed the proposal with attack ads on TV throughout October.
Proposition 40 also suffered from having a weak coalition of supporters who could not compete with those ads and relied on cheaper methods, such as social media and influencer campaigns, to rally support.
The race was not called until almost a week after the election as California counted mail ballots at a deliberate pace. Though the vote gap shrank as more ballots were tallied, the measure ultimately failed to get enough support despite it being a hugely successful election for Democrats and left-leaning candidates.
Live Election Results
2026 Elections
Popular races
Miss. Senate
Colom (D) +0.27
>95% in
Alaska Senate
Peltola (D) +1.2
76% in
Colo. 4th District
Laubacher (D) +0.88
>95% in
Calif. Prop. 40 - Wealth Tax
No
Tenn. 4th District
Broderick (D) +0.14
>95% in
N.C. 5th District
Hubbard (D) +0.03
>95% in
Calif. Prop. 42 - Property Taxes
Yes +3
83% in
La. 5th District
Two candidates advance
Minn. 1st District
Johnson (D) +0.1
>95% in
La. 6th District
Two candidates advance
Miss. Senate
Colom (D) +0.27
>95% in
Alaska Senate
Peltola (D) +1.2
76% in
Colo. 4th District
Laubacher (D) +0.88
>95% in
Calif. Prop. 40 - Wealth Tax
No
Tenn. 4th District
Broderick (D) +0.14
>95% in
N.C. 5th District
Hubbard (D) +0.03
>95% in
Calif. Prop. 42 - Property Taxes
Yes +3
83% in
La. 5th District
Two candidates advance
Minn. 1st District
Johnson (D) +0.1
>95% in
La. 6th District
Two candidates advance
The failure of the billionaire tax in California, a liberal state, is likely to be used as evidence for years to come that Americans will not stomach similar wealth taxes. The concept is expected to come up during the 2028 presidential campaign, and Mr. Newsom has already said he would be interested in a national wealth tax but not one only in his own state.
Subscribe to The Times to read as many articles as you like.