California voters reject one-off billionaire wealth tax US media predicts

The proposal, known as Proposition 40, would have affected approximately 200 of California's wealthiest residents, requiring them to contribute 5% of their total net worth. Most of the estimated $100 billion raised would have been allocated to the state's public healthcare system, which has faced budget cuts under the Trump administration.

CNN and CBS News both called the result almost a week after polling day. California, with the largest population of any US state, is known for its slow vote counting process. With roughly 60% of ballots counted on Wednesday, the "No" side was already ahead by 55.6% to 44.4%.

Opposition spending

Opponents of the measure, including Google co-founder Sergey Brin, spent hundreds of millions of dollars fighting the proposal. Campaign advertisements filled California's TV channels, warning that the tax would drive the super-rich out of the state and result in future tax revenue losses.

Political context

Prop 40 was one of many questions on the ballot in last week's midterm elections, which saw Democrats make sweeping gains across the country while President Donald Trump's Republicans suffered heavy losses. Wealth tax supporters viewed the vote as a crucial test for their global campaign against widening inequality.

California has now rejected a wealth tax three times this decade. The state, if it were a country, would rank as the world's fourth-largest economy, yet it continues to grapple with significant wealth disparities.