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Private Wealth Daily
NewsRIAs

California voters reject Proposition 40 billionaire wealth tax

Opponents outspent backers roughly 10 to one, and a political action committee raised more than $333 million, according to InvestmentNews.

$333MRaised by the PAC that opposed Proposition 40

By the RIA desk3 min read

At a glance

  1. The Associated Press called the race late Monday, with "no" leading by roughly 5.5 points.
  2. Building a Better California raised more than $333 million, including more than $100 million from Sergey Brin and $45.6 million from Eric Schmidt.
  3. Advisors serving high-net-worth California clients had held residency discussions over the proposal, and the vote removes the measure behind those conversations.

California voters rejected Proposition 40, a one-time 5% levy on the net assets of residents worth more than $1 billion, InvestmentNews reported.

The Associated Press called the race late Monday, with "no" leading by roughly 5.5 points. Backers led by SEIU United Healthcare Workers West had projected about $100 billion over five years.

Opponents outspent proponents by roughly 10 to one. Building a Better California raised more than $333 million, including more than $100 million from Sergey Brin and $45.6 million from Eric Schmidt.

Advisors serving high-net-worth California clients had held residency discussions over the proposal, and the vote removes the measure behind those conversations.

A companion measure to ban wealth taxes outright held a narrow lead Monday but had not been formally called.

Reported by the RIA desk from InvestmentNews. Published . Corrections

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