California Electorate Defeats Proposed Levy On Billionaire Wealth Arabian Post

(MENAFN- The Arabian Post) clearfix"> California voters have rejected a proposed tax on billionaires, handing a defeat to labour unions and progressive Democrats after a costly campaign that exposed divisions within the state's governing party.

Proposition 40, which would have imposed a one-off 5% levy on the net worth of residents holding more than $1 billion, was defeated in the November 3 election. With counting continuing, returns showed approximately 53% voting against the proposal and 47% supporting it. The outcome was called on Monday, November 9.

The decision blocks what would have been the first state-level wealth tax of its kind in the United States. It also raises obstacles for campaigners seeking similar levies elsewhere, although supporters have pledged to renew their efforts in California.

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