California voters reject Proposition 40 taxing billionaires' wealth

California voters have rejected Proposition 40, a first-in-the-nation measure that would have imposed a one-time 5% tax on the net worth of Californians with assets exceeding $1 billion, according to reports from santafenewmexican.com and abc7news.com.

The measure was intended to help backfill an estimated $100 billion loss in federal healthcare funding over five years, with 10% of the revenue also earmarked for education and food assistance programs, as reported by santafenewmexican.com.

The campaign against Proposition 40 saw significant spending from prominent tech leaders, with the 'no' side raising roughly ten times more funds than supporters. Google co-founder Sergey Brin alone contributed over $100 million to defeat the measure, abc7news.com noted.

Democratic leaders, including Governor Gavin Newsom, opposed the tax, arguing it could prompt wealthy individuals to leave California. The Associated Press confirmed the measure's failure after counting mail-in ballots that arrived within a week of Election Day, according to abc7news.com.

Supporters like SEIU United Healthcare Workers West argued the tax was necessary to replace lost federal healthcare funding. The measure was seen as a major test of progressive efforts to tax the ultra-rich based on their investments rather than income, santafenewmexican.com reported.