California rejects tax on the wealth of multimillionaires

California voters rejected a proposal to tax the net worth of billionaires, marking a significant defeat for progressive taxation efforts. The measure, known as Proposition 40, faced strong opposition from tech leaders and was supported by unions advocating for healthcare funding. Critics argued it would drive wealthy residents out of the state. The campaign against the tax raised significantly more funds, with major contributions from figures like Sergey Brin of Google. While younger voters leaned towards supporting the tax, older voters largely opposed it. Governor Gavin Newsom, who may run for president in 2028, argued that such a tax would disadvantage California but supports a national minimum tax for those with over $100 million in net worth.