California rejects proposal to tax the wealth of state’s billionaires

California voters rejected Proposition 40, which aimed to impose a one-time 5% tax on billionaires' net worth to fund health and education. The proposal faced opposition from prominent Democrats and wealthy tech donors, leading to a divided public opinion. Advocates argued that the tax was necessary to address federal funding cuts, while opponents claimed it could harm the state's economy. The ultra-wealthy individuals targeted by the tax hold a combined wealth of $2.3 trillion, significantly increasing in recent years due to the AI industry. Despite the defeat, proponents vow to continue the discussion on wealth taxation.