California voters have rejected a “one-time” wealth tax on billionaires.
A ballot measure that proposed the tax on roughly 200 to 250 extra-rich state residents failed, 53% to 47%. The Associated Press confirmed the result late Monday, nearly a week after Election Day.
A tax on people worth over $1 billion seemed like an easy lift in liberal California. But Democratic Gov. Gavin Newsom said a national wealth tax would be better, so billionaires would not flee the state.
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The incoming governor, Xavier Becerra, also opposed the ballot measure, known as Proposition 40.
While those Democrats still want wealthier Californians to pay what they call “their fair share” of taxes, a wall of outright opponents said the wealth tax would hurt the state economy.
Tech leaders, notably Google co-founder Sergey Brin, poured millions into opposition ads.
The Service Employees International Union-United Healthcare Workers West drove support for the levy, calling it necessary to restore fairness and fund health programs.
U.S. Rep. Ro Khanna, California Democrat, supported the tax and criticized Mr. Newsom, saying the governor did not want to cross the billionaires “bankrolling his campaigns.”
Sen. Bernard Sanders of Vermont, a hero to the socialist left, made an October push to bolster support for the tax.
But it wasn’t enough to get the idea across the finish line. The tax divided liberals, with some saying it was not a sustainable revenue source.
Outside studies said the tax would be self-defeating because billionaires would move out of California, eroding the future tax base.
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