California’s “Rich Tax” referendum was rejected, tech giants spent heavily to oppose it, but it worked

California Voters reject the nation’s first wealth tax on the net worth of billionaires.Referendum Bill “Proposition 40” (Proposition 40).

Most voters in California vote by mailvote Any ballot that is postmarked by Election Day (the third day) and delivered within seven days will be counted, meaning that in close elections it often takes days or even weeks to decide the winner.

However, the Associated Press determined on the 9th that the negative votes were enough to win.

The controversial measure originally planned to impose a one-time 5% wealth tax on California residents with a net worth of more than 1 billion yuan. Ahead of the midterm elections, wealthy people in the technology industry spent heavily to promote the opposition movement.

Google co-founder Sergey Brin has personally invested more than 100 million yuan. According to data filed as of October 22, the opposition camp has raised about 130 million yuan, while the support camp has raised 33 million yuan.

“Proposition 40” indicates that taxable assets include corporate holdings, securities, investment accounts, art and intellectual property, etc. Real estate, pensions, and retirement accounts are generally not subject to taxation; The tax is originally scheduled to be paid next year, and taxpayers can also choose to pay in installments over five years.

Supporters estimate that if the proposal is passed, it could raise more than 100 billion yuan for the California government, most of which would be used to fill the gap caused by the federal government’s cuts in medical funding, and another 10% would be invested in education and food aid.

Proposition 40 is the biggest test yet for the idea long advocated by progressives to raise taxes on the investments of the super-rich rather than on wages.

The Service Employees International Union-Western Chapter (SEIU-UHW), which promotes Proposition 40, reported that California would lose an estimated $100 billion in federal health care funding over the next five years and urgently needed to develop new financial resources.

However, opponents warn that imposing a wealth tax could encourage wealthy individuals and businesses to leave California, which in turn would impact state government finances.

A study released in October by Stanford University economists suggested the tax could initially bring in about 30 billion yuan in revenue, but the flight of the rich could eventually lead to a net loss of 38.9 billion yuan.