California Voters Reject Prop. 40 Billionaire Tax for Medi-Cal
In a CalMatters commentary, the author argues that California's Proposition 40, a one-time 5% tax on billionaires' stocks, bonds and business holdings estimated to raise $100 billion for Medi-Cal, failed after opponents led by Sergey Brin spent $379 million to defeat it. The piece contends opponents successfully stoked fears that a legislative amendment clause could let lawmakers extend the tax to ordinary retirement accounts, and that a competing countermeasure, Proposition 42, barring taxes on personal property, was on track to pass. The author argues capital-flight fears driving the "no" campaign, including Gov. Newsom's opposition, are not supported by research, and that the measure's defeat reflects how money dominates California's political system rather than sound tax policy.