California voters rejected a proposed billionaire wealth tax championed by progressive leaders including Senator Bernie Sanders, delivering a rare defeat for left-wing economic policies in the heavily Democratic state.
With all precincts reporting, Proposition 40 failed by a 53%-47% margin according to the Associated Press. The measure would have imposed a one-time 5% tax on the net worth of California’s roughly 180 billionaires, generating an estimated $21 billion primarily for public health care programs.
Progressive Backers Suffer Setback
The Service Employees International Union – United Healthcare Workers West, representing 120,000 health care workers, spearheaded the campaign. High-profile supporters included potential 2024 Democratic presidential hopefuls Rep. Ro Khanna (D-CA) and Senator Chris Murphy (D-CT).
The loss deals a blow to progressive efforts to implement wealth taxes nationwide. Had it passed, 90% of revenue would have funded health care services, with the remainder allocated to education, food assistance, and program administration.
Divide Among Democrats
Governor Gavin Newsom, another potential White House contender, broke with progressive allies by opposing the measure. While supporting wealth taxes in principle, he argued for broader spending flexibility that could include education, abortion access, and housing initiatives.
The California Legislative Analyst’s Office projected the tax would have affected approximately 180 taxpayers whose net worth exceeded $1 billion in at least one year between 1982-2025, applying to both current and former residents.
Opposition from Business Interests
Critics like newly-independent Rep. Kevin Kiley warned the measure would accelerate business flight from California. “This is an unprecedented attempt to chase down people who have already left,” Kiley said. “Many job creators are leaving preemptively.”
The failed vote marks a rare loss for progressive economic initiatives in California and suggests potential challenges for similar wealth tax proposals in other states.
Source: www.dailywire.com โ https://www.dailywire.com/news/bernie-sanders-backed-billionaire-wealth-tax-shot-down-by-voters