California’s proposed ‘billionaire tax’ fails to pass

California voters rejected a proposed 5% tax on billionaires, defeating the 'billionaire's tax' ballot measure Proposition 40. The tax, which would have applied to residents with a net worth over $1 billion, was opposed by tech leaders and Governor Gavin Newsom, and was seen as a way to fund public programs, including Medi-Cal. The tax would have been applied retroactively to those with a net worth exceeding $1 billion as of January 1, 2026. The measure's failure was attributed to an expensive campaign and the opposition of tech leaders, who outspent backers 10 to 1.