Proposition 40 billionaire tax rejected by California voters

A nationally-watched initiative that would have taxed the wealth of California billionaires has been defeated at the ballot box, according to the Associated Press. Preliminary results as of Monday evening showed about 52.9% of voters rejected the one-time, 5% wealth tax, compared to 47.1% who voted for it. The Associated Press at 6:28 p.m. Monday projected the ballot measure would fail to pass. Before polls had even closed last week, labor leaders who backed the measure, including SEIU-United Healthcare Workers West president Dave Regan, were already talking about trying again. Backers of Prop. 40 argued it was necessary to address Medicaid cuts that state analysts predict could cost $30 billion annually and cause up to 3.4 million Medi-Cal members to lose coverage. “If Sacramento fails to deliver a real solution to the healthcare crisis instigated by the One Big Bill — one that actually makes billionaires pay their fair share — then California’s healthcare workers intend to be back on the ballot in 2028 to correct the damage,” Regan said. He blamed billionaires and other ultra-wealthy donors for burying Prop. 40 in a deluge of “completely egregious fabrications, lies, misinformation on our airwaves.” Groups that fought against the tax, including the California Medical Association and California Primary Care Association, said in a joint statement that the measure “risked California’s economic competitiveness and fiscal stability, as well as the revenue we rely on to fund our top priorities — from education and healthcare to public safety and infrastructure.” “The defeat of Proposition 40 does not diminish the urgent challenges California faces, including the enormous pressure on our healthcare system from federal cuts under H.R. 1,” the No on 40 campaign said in a statement. “We look forward to working with Governor-elect Xavier Becerra, legislative leaders, and stakeholders across the state on more thoughtful, inclusive solutions that provide durable, sustainable funding for the future.” ©2026 The Sacramento Bee. Visit at sacbee.com. Distributed by Tribune Content Agency, LLC. More from this section Politics After saying deportation policy was too tough, Trump now says it's 'very strong,' rejects 'amnesty' Updated 3 hrs ago Politics Democrats plan to use new power to rein in Trump's education agenda, but their tools are limited Updated 6 hrs ago Politics How protection of public land shapes political strategies in the American West Updated 12 hrs ago Politics California's fifth consecutive Catholic governor exemplifies the faith's deep roots Updated Nov 8, 2026 Inside Killeen Podcast