You read here, the day after the election, that it was likely that California’s billionaire tax would fail, but now the Golden State has finally finished counting and made it official. Yes, Californians rejected the idea of punishing their wealthiest residents for their success by confiscating their wealth. Laurel Rosenhall reports in The New York Times:
The race was not called until almost a week after the election as California counted mail ballots at a deliberate pace. Though the vote gap shrank as more ballots were tallied, the measure ultimately failed to get enough support despite it being a hugely successful election for Democrats and left-leaning candidates.
As of Monday night, Proposition 40 had only 47 percent support with an estimated 83 percent of the votes counted.
Wealth Taxes a Non-Starter
Before all the ballots were counted, The Tax Foundation’s Jared Walczak noted that a failure of Prop 40 could be taken as a sign across the country that wealth taxes are a non-starter. He wrote:
And in the night’s star attraction, California voters appear to have rejected the wealth tax, a result with far-reaching economic and political ramifications. California’s failure to pass a first-in-the-nation wealth tax may dampen enthusiasm for similar measures in Oregon, Minnesota, Hawaii, and Washington. (Nevertheless, supporters of the California measure have already signaled interest in trying again in 2028.) And while some detractors, like Gov. Gavin Newsom, opposed a California wealth tax while supporting a federal wealth tax, members of Congress will likely take note of this result from one of the nation’s most progressive states as well.
Action Line: Hopefully Walczak is correct, and calls for wealth taxes will disappear. However, don’t be surprised if they don’t. Politicians heading to Washington, D.C. and state capitals across the country today are preparing to spend more of your money on their radical agendas. They won’t give up easily. Click here to subscribe to my free monthly Survive & Thrive letter.
