Billionaire tax rejected on concern squeezing California’s ultra-rich would harm the economy
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California voters have officially rejected the controversial billionaire tax.
Proposition 40 sought to impose a one-time 5% tax on California billionaires’ assets to try to offset federal healthcare funding cuts.
Despite the blue wave in the mid-term elections, the novel tax on the ultra-wealthy had trailed from the first day of vote counting and was officially rejected on MondayRoughly 53% of California voters voted against the measure while 47% voted for it, according to the Associated Press as it declared that California voters had rejected the measure.
uncertain
voters → reject → measure
Although the tax was rejected in the vast majority of counties, the final tally showed major pockets of support in Los Angeles and San Francisco—home to the lion’s share of the state’s 200 billionaires.
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tally → reject → billionaires
Orange County, however, voted no by a wide margin.
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County → vote → margin
In one of the most expensive ballot fights in California history, opponents heavily outspent supporters of a billionaire tax to mostly fund healthcare.
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opponents → outspent → healthcare
On Wednesday, the wealth tax appeared headed for defeat though results on Proposition 40 were too close to call.
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results → head → Proposition
The political battle over the ballot measure and two competing proposals divided the state and was among the most expensive in California history.
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battle → compete → history
More than $400 million had been spent on the three intertwined ballot measures, with more than 90% spent opposing the billionaire tax, according to fundraising disclosures filed with the Secretary of State’s office.
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% → spend → office
Billionaires, notably Google co-founder Sergey Brin, poured hundreds of millions of dollars into groups that funded ads to kill the billionaire tax.
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that → pour → tax
California Gov. Gavin Newsom, the California Teachers Assn. and Planned Parenthood Affiliates of California are among the powerful Democrats and other Democrat-aligned groups that expressed fears that billionaires would flee the state.
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billionaires → align → state
Some, including Brin and fellow Google co-founder Larry Page, moved out of California because of the proposal.
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Some → include → proposal
An onslaught of advertisements against the billionaire tax argued it could impact all Californians, not just the ultra-wealthy.
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it → argue → Californians
Teachers, firefighters and other middle-class Californians became the face of their campaigns, fueling growing opposition ahead of election day.
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Teachers → become → day
Campaigns supporting and opposing the billionaire tax proposal are paying social media influencers, some with millions of followers, to post videos to inform and sway voters.
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Campaigns → support → voters
Opponents of Proposition 40 said Californians made the “right decision,” calling Proposition 40 a “reckless experiment” that would hurt the state’s economy.
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that → say → economy
The group included the California Medical Assn., California Primary Care Assn. and the California School Boards Assn.
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group → include → .
“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,” the group said.
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group → risk → safety
Leaders of the Service Employees International Union-United Healthcare Workers West, which sponsored the proposition, vowed to put a billionaire tax proposal on the 2028 ballot if Sacramento leaders don’t find a way to better support the public health sector.
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leaders → sponsor → sector
Given California’s volatile budget, which is expected to be particularly problematic next year, it appears unlikely that state lawmakers will find a way to backfill an estimated $100 billion of federal healthcare funding cuts.
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lawmakers → give → cuts
Supporters said the proposed tax on more than 200 California billionaires aimed to raise that amount, with 90% funding healthcare, and the remainder going to schools and food assistance.
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remainder → say → schools
“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.
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Jimenez → fund → UHW
“Californians will see for themselves what was at stake.
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what → see → stake
This will not be the end of the debate about taxing the rich.
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This → tax → rich
U.S. Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Fremont), who both backed Proposition 40, are pushing for the passage of a federal 5% tax on American billionaires.
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who → back → billionaires
Earlier this year, they introduced the “Make Billionaires Pay Their Fair Share Act.”
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Billionaires → introduce → Act
Despite Democrats winning control of the House and Senate last week, the legislation will likely face constitutional challenges if it passes.
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it → win → challenges
The Aporia
