Staff Reports
Californians handed a clear message to Sacramento elites on Election Day: they aren’t ready to punish success with a one‑time “billionaire tax.” Proposition 40 trailed in the vote count and, crucially, was smothered by rival measures written to cancel it out. SEIU‑United Healthcare Workers West president Dave Regan vowed to try again, but voters made their feelings known in a blunt, practical way.
Election night: Prop. 40 headed for defeat
Early and continuing returns showed Prop. 40 lagging in the mid‑40s while the anti‑tax measure Prop. 42 led. Prop. 41, a companion spending‑limit/audit measure, also trailed. California’s ballot rules meant that even a close win for the billionaire tax could have been wiped out if the countermeasure drew more yes votes. In short: the math, the rules and voter skepticism all lined up against the wealth grab.
Poison‑pill tactics and massive spending
This was not a fair fight. Organized billionaires and their PAC poured in huge sums to defeat Prop. 40 and to fund the countermeasures. The union‑led backers of Prop. 40 spent far less, and the whole campaign felt like a one‑sided street fight led by a union boss looking for a fast payday for his members. Supporters argued the tax would raise tens of billions; critics warned of economic fallout, people leaving the state, and long‑term holes in tax receipts. Voters, evidently, found those warnings persuasive.
Why the result matters for California politics
Rejecting Prop. 40 is a win for common sense and for Californians who worry that punishing the state’s most successful residents will only drive talent and money away. It also exposed a split among Democrats, with some national figures and the governor opposing the measure and others backing it. The episode should remind Sacramento that heavy‑handed tax schemes, rushed through ballot boxes and wrapped in union fundraising, are a risky way to govern.
What’s next: litigation and another run
Don’t expect the idea to die. Regan warned supporters he’ll be back on the ballot in two years, and the Prop. 40 text itself anticipated legal fights. There will be recounts, possible lawsuits and years of headlines. If proponents want a real victory next time, they should stop hoping massive grabs or gimmicky ballot text will carry the day. Try building a coalition, address LAO concerns about long‑term revenue, and stop treating voters like a bank to be robbed for a union war chest.
