Silicon Valley’s richest outspent supporters more than 10 to one to kill California’s billionaire tax—and won

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Voters also voted to pass Proposition 42, potentially blocking future taxes on income and assets.

California voters rejected a proposed tax on the state’s billionaires after some of Silicon Valley’s wealthiest executives and investors spent $378.4 million to defeat it—delivering a victory to a coalition led by Google cofounder Sergey Brin.

The Associated Press called the race on Monday, with 52.8% of voters opposing Proposition 40 and 47.2% supporting it. The votes needed to pass the measure had trailed for days.

The defeat means—at least for now—an effort to make California the first state to impose a one-time tax on its billionaires has ended. It also represents a significant win for the Silicon Valley executives who have come together to block the measure.

Approximately 52.8% of voters opposed Proposition 40, whereas 47.2% supported it. According to CalMatters, ultrawealthy opponents collectively contributed $378.4 million to efforts opposing the tax and related countermeasures like Props 41 and 42. That amount is more than 10 times the $33.5 million raised by supporters of Proposition 40.

The defeat means, at least for now, an effort to make California the first state to impose a one-time tax on its billionaires has ended. It also represents a significant win for the Silicon Valley executives who have come together to block the measure.

Proposition 40 would have imposed a one-time 5% tax on the net worth of individuals worth more than $1 billion who were California residents on Jan. 1, 2026. The proposed tax covered financial assets and other forms of wealth, rather than just income.

Under the proposal, approximately 90% of the revenue would have gone toward healthcare services, with the remaining 10% allocated to education and food assistance. The Legislative Analyst’s Office estimated that the measure could generate “tens of billions” of dollars.

The initiative was introduced by Service Employees International Union-United Healthcare Workers West, which argued that California needed additional revenue to address healthcare funding shortfalls following federal…

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