Silicon Valley’s richest outspent supporters more than 10 to one to kill California’s billionaire tax—and won

Detailed summary

Voters also voted to pass Proposition 42, potentially blocking future taxes on income and assets.

California voters rejected a proposed tax on the state’s billionaires after some of Silicon Valley’s wealthiest executives and investors spent $378.4 million to defeat it—delivering a victory to a coalition led by Google cofounder Sergey Brin.

The Associated Press called the race on Monday, with 52.8% of voters opposing Proposition 40 and 47.2% supporting it. The votes needed to pass the measure had trailed for days.

The defeat means—at least for now—an effort to make California the first state to impose a one-time tax on its billionaires has ended. It also represents a significant win for the Silicon Valley executives who have come together to block the measure.

Approximately 52.8% of voters opposed Proposition 40, whereas 47.2% supported it. According to CalMatters, ultrawealthy opponents collectively contributed $378.4 million to efforts opposing the tax and related countermeasures like Props 41 and 42. That amount is more than 10 times the $33.5 million raised by supporters of Proposition 40.

The defeat means, at least for now, an effort to make California the first state to impose a one-time tax on its billionaires has ended. It also represents a significant win for the Silicon Valley executives who have come together to block the measure.

Proposition 40 would have imposed a one-time 5% tax on the net worth of individuals worth more than $1 billion who were California residents on Jan. 1, 2026. The proposed tax covered financial assets and other forms of wealth, rather than just income.

Under the proposal, approximately 90% of the revenue would have gone toward healthcare services, with the remaining 10% allocated to education and food assistance. The Legislative Analyst’s Office estimated that the measure could generate “tens of billions” of dollars.

The initiative was introduced by Service Employees International Union-United Healthcare Workers West, which argued that California needed additional revenue to address healthcare funding shortfalls following federal…

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