California voters have rejected Proposition 40, a ballot measure that would have made the state the first to tax the net worth of its wealthiest residents, and the union behind it says it will try again in 2028.
The AP called the race Monday, six days after the November 3 election. About 53% of voters opposed the measure, and 47% supported it.
The measure targeted an estimated 200 Californians worth more than $1 billion with a single 5% levy on their net worth. Most of the money would have paid for health care, with smaller shares for food aid and schools. Supporters put the five-year haul at about $100 billion.
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Ultra-wealthy opponents gave $378.4 million to the fight, with Google co-founder Sergey Brin contributing $102 million through a political committee he created to defeat the measure. The campaign backing it collected $33.5 million. Gov. Gavin Newsom, a Democrat, opposed the tax, while the California Democratic Party and Sen. Bernie Sanders supported it.
SEIU-UHW president Dave Regan said the union plans a 2028 return to the ballot unless lawmakers come up with a real answer on health care funding. “That’s not a hypothetical. That’s our plan,” he said.
Proposition 42, a rival measure that would bar new state wealth taxes and most retroactive levies, was ahead 51.6% to 48.4% on Monday evening, and no one has called it yet. Newsom endorsed the measure, saying people’s retirement savings deserve protection from new state taxes. If it passes, it would likely block another try, though voters could repeal it with a later ballot measure.
