In one of the most expensive ballot fights in California history, opponents heavily outspent supporters of a billionaire tax to mostly fund healthcare. On Wednesday, the wealth tax appeared headed for defeat though results on Proposition 40 were too close to call.

cross-posted from: https://lemmy.world/post/54152859

Proposition 40, which would impose a one-time 5% tax on California billionaires to help fund healthcare, appeared headed for defeat, though votes were still being counted.

Opponents raised hundreds of millions of dollars to fight the measure, far outspending supporters, who argued the tax could help offset federal healthcare cuts.

The campaign also faced opposition from Gov. Gavin Newsom, teachers, business groups and others, while voters weighed concerns about taxing assets and the possibility that billionaires could leave California.

  • Rusticus@lemmy.worldEnglish
    55·
    2 days ago

    The reason that the billionaire tax failed is that it’s stupid. Taxing unrealized gain is wrong in most voters minds. There is a much much better solution.

    All billionaires hold their wealth in stock, which until they sell it is an unrealized gain - meaning that money is not being actively used by the owner monetarily. Their superpower is leveraging against those stocks to get a loan to buy the $500 M yacht (looking at you Bezos). Currently that is tax free. I will argue to my grave that getting a loan against stock held is now a realized gain and should be taxed as such.

    TL/DR; if you tell the voters billionaires should be taxed when they get a loan against their stocks to buy a mansion, yacht or election they would vote for this in a heartbeat.

    • Soggy@lemmy.worldEnglish
      1·
      2 days ago

      Taxing unrealized gain is wrong in most voters minds.

      Property tax is already doing that though.

    • andrewrgross@lemmy.today
      1·
      2 days ago

      I think this is one of many possible adjustments, but I agree with your point that a lot of people had questions about how thoroughly this had been planned, and didn’t quite trust the current version. That’s how I felt (although I voted for it anyway).

      Anyway, I agree with you that there will be other versions of this, and some version will eventually pass.