California rejects wealth tax, fearing exodus of billionaires

California voters rejected a one-time wealth tax on billionaires, known as 'Proposition 40', which aimed to fund healthcare and education. The proposal, backed by progressive Democrats like Bernie Sanders, faced opposition from Governor Gavin Newsom, who warned it could drive wealthy residents out of the state. Ultimately, 52.8% voted against the tax, with significant funding from the opposition campaign, including $100 million from Google co-founder Sergey Brin. The union behind the proposal plans to continue advocating for healthcare protections and may reintroduce the measure in 2028.