California voters reject 5 per cent wealth tax on billionaires
California Proposition 40, a one-off 5 per cent tax on residents worth over US$1 billion, failed with around 47 per cent support.
California voters rejected a proposal to tax about 200 billionaires at 5 per cent of their net worth, roughly US$1 billion (A$1.4 billion) or more. Proposition 40 would have been a one-off levy, affecting many in Silicon Valley.
With almost 90 per cent of votes counted, it appears to have lost by roughly 53 to 47. Proposition 42, a related measure protecting personal savings from state tax, passed at 51.6 per cent.
Campaigners say they will try again in 2028. The close result surprised observers; a decade ago such a tax would have struggled to reach 27 per cent.
- 47 per cent for, 53 per cent against
- Vote margin
- About 200
- Billionaires affected
- US$1 billion
- Wealth threshold
- 27 per cent
- Support a decade prior
Why it mattersThe near-pass suggests the US is moving toward accepting wealth taxes, a shift that typically spreads to other democracies including Australia.
AustraliaAustralian policymakers watch US tax policy closely. If wealth taxes gain traction in America, similar proposals could emerge in Australian federal or state parliaments.
✓ Claims checked against the source. checked 2 d ago
