California voters reject billionaire tax

What the report says

California voters have rejected Proposition 40, a ballot measure that would have imposed a one-time 5 percent tax on residents with net worth above $1bn, according to projections cited by Associated Press and reported by Al Jazeera. With about 60 percent of votes counted on Tuesday, the “no” side was leading 55.6 percent to 44.4 percent.

The proposal was designed to raise about $100bn, with most of the money directed to healthcare programs and smaller portions for education and food assistance. It had been backed by Senator Bernie Sanders and other progressive figures as a way to address economic inequality and help replace federal funding cuts linked by Democrats to President Donald Trump’s One Big Beautiful Bill.

Outgoing Governor Gavin Newsom opposed the measure, arguing that it could encourage wealthy entrepreneurs to leave California. Al Jazeera reported that this opposition, along with divisions among Democratic leaders and labor unions, weakened support ahead of the midterm vote.

According to the report, California billionaires, including Google cofounder Sergey Brin, spent more than a quarter of a billion dollars campaigning against the initiative. The result is seen as a setback for the Democratic Party’s left wing, even as some national Democrats continue to signal interest in taxing the ultrawealthy.