California voters reject Prop 40 billionaire wealth tax
Why it matters: The measure was pitched as a way to raise $100 billion for healthcare after federal cuts, but drew heavy Democratic opposition.
California voters rejected Proposition 40, a ballot measure that would have imposed a one-time 5% tax on most billionaire wealth in what backers said could raise $100 billion for healthcare. The Associated Press called the race after a campaign that split Democrats in a state where they dominate statewide politics. Supporters, led by the healthcare workers union SEIU-UHW, argued the money would help offset healthcare cuts from President Donald Trump's tax and spending law. Opponents, including Gov. Gavin Newsom, warned the levy could push wealthy residents out of California and weaken state tax revenue. Google co-founder Sergey Brin helped fund the opposition, which far outspent supporters.