California voters reject one-time 5% billionaire wealth tax

California voters rejected Proposition 40, a proposed one-time 5% wealth tax on residents worth more than $1 billion, TechCrunch reported, citing an Associated Press report Monday. The proposal would have applied retroactively to people residing in California on January 1, 2026, with proceeds supporting public programmes including Medi-Cal. The defeat removes the proposed levy on wealth that can include founders' company holdings. Opponents argued it could force share sales and drive residents away; policy architect Emmanuel Saez disputed claims that it would require founders to surrender voting control. Backers said they could put a similar tax on the ballot in 2028.