Why California's billionaire tax failed to get the support many had anticipated
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Set us as preferred Despite a nationwide blue wave in the midterm election, California’s much-debated billionaire tax didn’t get the support many expected in one of the country’s most liberal states.Since the Golden State’s powerful healthcare union proposed the new tax, supporters of Proposition 40 have faced a fierce, expensive battle against the world’s richest people.In what has been described as a David-versus-Goliath fight, the underdog appears to have lost.
The proposition, which would have imposed a one-time 5% tax on the assets of California billionaires to mostly fund healthcare, seemed headed toward defeat as votes were tallied Wednesday.“In a deep blue state like California, most voters are going to support additional funding for healthcare, especially to replace Trump funding cuts.
But in retrospect, the sponsors may wish they’ve been a little bit less ambitious,” said Dan Schnur, a politics and communications professor at USC, UC Berkeley and Pepperdine.Nearly 56% of California voters rejected the proposal while 44% voted for Proposition 40.However, with roughly 6 million votes still needed to be counted, the results are still too close to call.The battle over the billionaire tax has been one of the most expensive ballot-measure fights in California’s history, sparking a debate over wealth inequality and taxing the ultrawealthy.
It also highlighted how billionaires have wielded more influence in politics.Well-known politicians such as U.S.Sen.
Bernie Sanders (I-Vt.), the California Democratic Party, healthcare workers and Hollywood celebrities including actor Mark Ruffalo, backed the wealth tax.But the idea drew opposition from California Gov.
Gavin Newsom, the teachers union, Planned Parenthood, business groups and others who expressed fears that billionaires could flee the state.The state�...