The measure, aimed at raising $100 billion to offset federal healthcare cuts, failed with 53% of voters opposing it.
The Battle Over a $100 Billion Lifeline
The proposal, championed by the Service Employees International Union-United Healthcare Workers West, divided the state and became one of California’s costliest ballot fights. More than $400 million was spent on three related measures, with over 90% of that funding going to campaigns against the billionaire tax.
Billionaires like Google co-founder Sergey Brin poured hundreds of millions into opposition groups, while Gov. Gavin Newsom and other Democrats warned the tax would drive wealthy residents and businesses out of California. The California Teachers Assn. and Planned Parenthood Affiliates of California were among the Democrat-aligned groups that shared these fears.
Where the Votes—and the Billionaires—Fell
The rejection was widespread but uneven. Orange County, however, rejected it by a wide margin. Opponents called Proposition 40 a “reckless experiment” that would harm the economy and risked driving away the very wealth Californians hoped to tax.
“Proposition 40 risked California’s economic competitiveness and fiscal stability, as well as the revenue we rely on to fund our top priorities — from education and healthcare to public safety and infrastructure,” said a coalition of groups including the California Medical Assn. and California School Boards Assn.
Supporters argued the tax was a necessary response to federal cuts that have left hospitals reducing services and emergency rooms closing. They framed the measure as a way to ensure the ultra-rich paid their fair share while protecting public services for all Californians.
The Fight Isn’t Over—It’s Just Relocated
The defeat in Sacramento doesn’t end the national debate. U.S. Sen. Bernie Sanders and Rep. Ro Khanna, who backed Proposition 40, are now pushing a federal 5% billionaire tax. Earlier this year, they introduced the “Make Billionaires Pay Their Fair Share Act.”
For now, the focus shifts to 2028. The SEIU-UHW has vowed to put a billionaire tax back on the ballot if state leaders don’t find a way to backfill the $100 billion in healthcare funding gaps.
“Billionaire-funded propaganda may have influenced the outcome of this election, but as hospitals reduce services, emergency rooms close and families lose access to care, the truth will become increasingly difficult to hide,” said Suzanne Jimenez, chief of staff for the SEIU-UHW.
“Californians will see for themselves what was at stake.” As California’s volatile budget looms, the question of who should bear the cost of public services remains as urgent as ever.
- Insurers Dispute Reinsurance Payouts in Montana Asbestos Settlement Case
- 21-Year-Old Motorcyclist Killed in Las Vegas Crash Near Blue Diamond Road
- Paul McCartney Has Entered the Billionaire’s Club With an Estimated Net Worth of Approximately (world-today-news.com)
- California Announces New Homekey+ Projects and Funding to Address Homelessness and Veteran Housing (newsdirectory3.com)
