California Billionaire Tax Heads for Defeat as Voters Reject Voter ID
California’s proposed 5% tax on billionaires’ assets was facing likely defeat on November 4, with about half the votes counted and opponents ahead by nearly 13 percentage points, or roughly one million votes. The tax was designed to raise an estimated $100 billion for healthcare, education and food assistance, with most of the money directed to healthcare programs affected by federal funding cuts.
The outcome would be a setback for low-income Californians and entertainment workers who might have relied on expanded or preserved healthcare coverage. About 22% of people working in arts, entertainment, recreation and accommodation were enrolled in Medi-Cal in 2023, and industry workers have faced growing difficulty qualifying for union health plans as production and jobs have declined.
The measure drew intense opposition from wealthy Californians, including technology figures, and the campaign involving it and two related measures drew hundreds of millions of dollars. Gov. Gavin Newsom rejected the proposal, cautioning that it might prompt wealthy residents and businesses to leave California; the state’s Democratic Party backed the tax. Propositions 41 and 42, which could constrain the tax through changes to state tax rules, remained close in early results, though Proposition 42 was slightly ahead.
Voters also rejected Proposition 39, which would have required identification for in-person voting, an alternate identifier for mail ballots, and citizenship checks for registered voters. Supporters of the billionaire tax said they could return with another proposal in 2028 if it failed.
Billionaire-Funded Opposition Pushes California Tax Toward Defeat
California’s proposed tax on billionaire wealth was nearing defeat on November 4, with opponents ahead by almost 13 points after about half the votes were counted. The measure would have imposed a one-time 5% levy to raise an estimated $100 billion, with 90% of the proceeds for healthcare programs facing federal funding cuts.
The result threatens a potential safety net for low-income residents and workers in an entertainment industry where jobs and access to union health insurance have become harder to secure. About 22% of workers in arts, entertainment, recreation and accommodation were enrolled in Medi-Cal in 2023. The tax could have helped freelancers and other seasonal workers as well as people losing coverage through industry plans.
Opponents and allied campaigns accounted for more than 96% of the spending in the billionaire-tax fight, which drew hundreds of millions of dollars. Newsom came out against the proposal, whereas California’s Democratic Party backed it. Two related proposals that could limit the tax remained close in early results, with Proposition 42 slightly ahead.
Voters also rejected Proposition 39, a Republican-led effort to require voter identification and citizenship checks. Tax supporters said they could return to the ballot in 2028. The result leaves the state’s healthcare funding debate unresolved while billionaires’ spending helped shape the campaign’s outcome.
California Voters Reject Billionaire Tax Amid Economic Concerns
California’s proposed 5% tax on billionaire assets was heading toward defeat on November 4, with opponents leading by nearly 13 points after about half the votes had been counted. The measure promised an estimated $100 billion for healthcare, education and food assistance, but its critics warned that taxing wealthy residents could weaken a state budget already dependent on them.
Gov. Gavin Newsom opposed the tax, arguing that it could push wealthy people and businesses out of California. Some billionaires had opposed the proposal, and two related ballot measures designed to constrain it remained close in early results. Proposition 42, which its backers framed as protecting personal savings and retirement funds from state taxation, was slightly ahead.
The vote underscored a basic concern about funding public services: a one-time levy on a small group may raise substantial revenue, but opponents argued that the state should not put its economic footing at risk. The Democratic Party endorsed the tax despite Newsom’s opposition.
Voters also rejected Proposition 39, which would have required identification for in-person voting, an alternate identifier for mail ballots and citizenship checks for registered voters. The billionaire-tax campaign’s supporters said they may return to the ballot in 2028 if the measure fails.
Reported by Los Angeles Times, The Hollywood Reporter, Semafor.
