California voters reject proposed billionaire tax | CBC News
A costly campaign fight
Building a Better California, which opposed the tax and backed other ballot measures intended to nullify it, raised more than $333 million US. Nearly one-third of that total came from Brin.
How supporters planned to use revenue
Most of the proposed revenue would have helped replace federal health-care funding cuts. Ten per cent was designated for education and food-assistance programs. SEIU United Healthcare Workers West said the tax was needed to address an estimated $100 billion US loss in federal health-care funding over five years. Proposition 40 was described as the nation’s biggest test yet of taxing the ultra-rich based on investment wealth rather than wages.
Debate over California’s approach
California relies heavily on income taxes paid by its wealthiest residents. Gov. Gavin Newsom opposed Proposition 40, arguing that a state wealth tax would put California at a disadvantage, while supporting a national minimum tax for people with net worth above $100 million US.
Newsom said Sen. Bernie Sanders was “spot-on” about wealth inequality, but added that they disagreed on the measure, according to the article. Robert Swonger, an independent voter and auto glass technician near Sacramento, said before voting ended on Nov. 3 that he planned to oppose it.
Key points
- California voters rejected Proposition 40, a proposed tax on billionaires’ net worth.
- The opposition raised roughly ten times the amount collected by supporters.
- Brin contributed more than $100 million US to a committee opposing the measure.
- Supporters said revenue could help address federal health-care cuts and fund education and food assistance.