California voters reject Proposition 40 billionaire wealth tax

California voters defeated Proposition 40, a ballot measure that would have imposed a one-time 5% tax on billionaires’ wealth. The proposal targeted California billionaires and would have covered most of their overall wealth, including ownership in companies and assets such as shares.

Reports describe the tax base in slightly different terms: one says it would have applied to total wealth, including assets such as shares as well as income, while another says it would have covered most overall wealth, including ownership in companies. The measure was known as Prop 40.

The campaign was the most expensive in California state history and was flush with Silicon Valley dollars, according to reports. Billionaires won the contentious ballot measure campaign.

One report says the proposal divided Democrats. It was described as a novel measure, and voters did not pass it.