California Voters Reject Billionaire Wealth Tax
California voters reject wealth tax proposal backed by Bernie Sanders and left-wing groups.
2 min read
California voters have rejected a wealth tax proposal backed by socialist Senator Bernie Sanders, dealing a rare blow to progressive efforts in the state. The measure, known as Proposition 40, would have imposed a one-time 5% tax on the net worth of all billionaires in California, with the proceeds primarily funneled into government health care programs.
Proposition 40 Falls Short
The Associated Press called the race Monday night, with 53% of voters opposing the measure and 47% supporting it. Had it passed, the tax would have targeted the wealthiest individuals in the state, with 90% of the funds allocated to health care services for the public, and the remaining 10% distributed to education, food assistance, and administrative costs of the wealth tax.
Progressive Groups Behind the Measure
The initiative was proposed and pushed by the Service Employees International Union – United Healthcare Workers West, representing approximately 120,000 health care workers in California. The measure was also supported by several prominent Democrats, including Rep. Ro Khanna (D-CA) and Senator Chris Murphy (D-CT), as well as Governor Gavin Newsom, who opposed the tax but advocated for a national version.
Newsom and Others Oppose the Tax
Newsom argued that the funds from the wealth tax should be used to support education, abortion facilities, and housing, rather than focusing primarily on health care. He called for a national billionaires’ tax, similar to a modern version of the Buffett Rule, ensuring that the top earners pay at least the same tax rate as their workers.
Opposition from Business and Political Leaders
Business leaders and political figures, including Rep. Kevin Kiley, a Republican-turned-independent, criticized the measure, arguing it would drive businesses out of the state. Kiley claimed that many job creators have already left California due to poor policies, and the tax would be an unfair attempt to reach out to those who are no longer residents.
Impact on Progressive Agenda
The defeat of Proposition 40 marks a significant setback for progressive advocates and left-wing organizations that had hoped the measure would pave the way for similar taxes across the country. With the state’s economy and political landscape remaining resilient, the outcome signals a shift in public sentiment against heavy taxation on the ultra-wealthy.
Source: Daily Wire
