California votes on wealth tax targeting billionaires over $1 billion
California votes Tuesday on a one-time five per cent tax on those with net worth above $1 billion.
Proposition 40 would tax the wealth of billionaires to replace federal healthcare funding cuts. Bernie Sanders calls it a landmark step against inequality.
Governor Gavin Newsom warns it will drive the ultra-rich out of California and shrink tax revenue. Tech moguls including Google co-founders Sergey Brin and Larry Page have already started cutting ties with the state.
Facebook founder Mark Zuckerberg said he would stay for eight years and negotiated a Meta deal to manage the tax burden. The "no" campaign has raised roughly ten times more money than supporters, thanks to venture capitalists and tech leaders.
Why it mattersIf approved, California becomes the first US state to tax billionaires' wealth.
AustraliaNo direct Australian effect yet, but if other countries follow California's lead, it could shift how wealthy Australians or global companies manage assets.
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