California Voters Reject ‘Billionaires Tax’ Amid Fears of an Exodus of Wealth From the State

California voters have rejected a proposed wealth tax, which could have meant a one-time influx of billions for the state but threatened to trigger an exodus of billionaires in the state.The ballot measure, one of several housing issues Californians considered, is projected by the Associated Press to narrowly fail, with 53% voting against the measure with most votes counted a week after Election Day. Proposition 40 would have created a one-time 5% wealth tax on individuals with a net worth above $1 billion.The Service Employees International Union–United Healthcare Workers West, which backed the measure, said it could have offset federal funding cuts. It estimated the one time tax could have brought in $100 billion in one-time revenue.But the measure could have affected about 200 people, and billionaires in the state have put significant money toward fighting it. The California Budget & Policy Center estimates they hold a combined $2 trillion in wealth. Proposition 40 excludes real property holdings from determining an individual's net worth.State leaders say tax could trigger some of those wealthy people to flee the state and take their spending with them. The National Taxpaye...