California voters rejected Proposition 40, a one-time 5% tax on the wealth of the state's billionaires. The Associated Press called the race Monday night.
Why it matters: The vote tested whether a state can tax accumulated wealth instead of income. Backers pitched it as a blueprint for other states and federal policy.
Where they split: Supporters said the tax would replace federal healthcare cuts, while opponents said it would drive billionaires out and shrink state revenue.
Center coverage, 6 sources: The center sees a measure that divided Democrats over whether a state-level wealth tax would backfire.
Left coverage, 9 sources: The left sees a setback for progressives, driven by record spending from the billionaires the tax would have hit.
Right coverage, 5 sources: The right sees voters rejecting a trial run for a national wealth tax whose revenue estimates were oversold.
What’s next: Prop 40 supporters are airing ads against Newsom in New Hampshire, New Mexico and Virginia. Those states vote early in the 2028 Democratic primary.
