Voters in California reject billionaire tax and voter ID measures

Approximately 425 million dollars was donated to the three interwoven ballot measures concerning the state’s wealth tax as of Tuesday. That massive financial outpouring centered on Proposition 40, a proposal to impose a one-time 5% tax on the assets of billionaires. The measure aimed to raise an estimated 100 billion dollars to assist Californians who risk losing healthcare coverage due to federal funding cuts. Early election results indicated the proposal was headed for defeat despite the large campaign budgets.

California voters also rejected Proposition 39, which would have required identification for voting and mandated verification of citizenship for all registered voters. The measure faced a backdrop of national distrust in the electoral process. This skepticism was fueled by President Trump’s claims that the 2020 election was stolen and that undocumented immigrants were swaying results. On Monday, the Supreme Court rejected an emergency appeal by the White House to set aside 20,000 ballots in the state.

Dave Regan, president of SEIU-United Healthcare Workers West, said healthcare workers intend to return to the ballot in 2028 if the measure fails. He stated that Sacramento must deliver a real solution to the healthcare crisis and make billionaires pay their fair share. The proposal would have retroactively applied to billionaires who lived in California as of January 1, causing some to move out of the state preemptively. Ninety percent of the revenue would have funded healthcare, with the remainder going to education and food assistance.

Two counter measures, Propositions 41 and 42, were designed to nullify the wealth tax if they received more votes. Proposition 41 framed the issue as cutting wasteful government spending and requiring audits of new special taxes. Proposition 42 presented itself as protection for everyday Californians’ retirement funds and home equity. Neither measure explicitly stated it would nullify the billionaire tax, but both included strategic changes to state tax laws and new spending restrictions.

The billionaire tax divided Democratic leaders because of concerns about the state’s volatile budget. Governor Gavin Newsom opposed the measure, while the state Democratic party endorsed it. The campaign came close to breaking a state campaign finance record, with the vast majority of funding provided by California billionaires. Many of these donors were tech barons who opposed the wealth tax.

Voters decided on 14 state ballot measures in addition to congressional and local elections. Proposition 1 was approved, creating an 11.25 billion dollar bond for affordable housing construction. Proposition 2 passed, giving lawmakers more flexibility over state spending by exempting certain tax revenue from spending limits. Proposition 37 was approved to create a down-payment assistance program for middle-class home buyers. Proposition 44 failed, which would have required health centers to spend 90% of revenue on patient care.

Several other measures remained too close to call Tuesday evening. Proposition 3 appeared on the verge of passing, which would make permanent a temporary tax increase on wealthy Californians. That tax adds 1% to 3% to the state income tax for high earners and largely funds education. The measure was passed in 2012, extended in 2016, and is set to expire in 2031. Other undecided measures included Propositions 4, 5, 38, 43, and 45.