Prop. 40 is projected to fail in California, according to the Associated Press.
Proposition 40, also known as the California billionaire tax, would require billionaires to pay a one-time 5% tax for those who have a net worth valued over $1 billion and were living in the state as of Jan. 1, 2026.
Prop. 40 mainly targeted their investments rather than raising taxes from their paycheck they receive from work, according to the Associated Press.
The goal was to generate $100 billion in revenue to help fund California’s Medicaid system after federal cuts, according to the Associated Press.
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The proposition has divided politicians, with U.S. Senator Bernie Sanders supporting the proposition, arguing the need for the wealthy to pay their fair share, while California Governor Gavin Newsom opposes Prop. 40, arguing the wealthy can simply move out of California.
Prop. 40 is nullified if Prop. 41 receives more votes than Prop. 40, even if it passes.
