California rejects billionaire tax

NY Times - California voters rejected a billionaire tax, The Associated Press determined on Monday, rebuking a measure that would have created the nation’s first wealth tax by targeting the assets of residents with a net worth beyond $1 billion.

Under the tax measure, Proposition 40, the state would have imposed a one-time, 5 percent tax on the personal assets of billionaires and devoted most of the revenue to health care.

The Democratic voters who dominate the California electorate generally support the concept of making wealthy people pay higher taxes. But Democratic leaders were divided over the proposal — Gov. Gavin Newsom opposed it while the California Democratic Party endorsed the tax. And some of the California billionaires who stood to pay the tax contributed heavily toward a campaign that slammed the proposal with attack ads on TV throughout October.