California Voters Reject Punitive One-Time Tax on Billionaire Wealth
A punitive one-time tax on California billionaires via Proposition 40 is heading for defeat, multiple news organizations forecast Monday.
It took nearly a week of counting votes after last week’s midterm election to determine a projection on the measure.
AFP notes the imposition would have forced some 200 billionaires in the state to part with up five percent of their total net worth as a penalty for their business success.
CNN and CBS News both projected Proposition 40 would fail after voters cast ballots on whether to approve the divisive tax penalty on wealth creators.
The measure has garnered a massive amount of pushback, even from many Democrats, including California Gov. Gavin Newsom, who warned the measure could backfire and drive wealth from the state.
With the highest population of any U.S. state, California is notoriously slow at counting votes, the AFP report further notes.
The levy already appeared to be headed for defeat last week, with about 60 percent of votes counted on Wednesday showing “No” was leading by 55.6 percent to 44.4 percent, the outlet continued.
“No” campaign commercials warning about the loss of future tax revenues if billionaires flee the state played wall-to-wall across TV stations in California in the run-up to the vote.
California has previously voted three times on a wealth tax, rejecting it every time.
Targeted billionaires responded by stating if it was instigated they would simply take their money elsewhere.
Had it passed, experts believe it would have been the world’s first wealth tax targeting billionaires.
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