Sen. Bernie Sanders (I-Vt.) said opposition spending helped defeat California’s billionaire wealth tax proposal. He pledged to pursue a federal version despite the state measure’s rejection.
Sanders took to X, claiming that wealthy interests spent $425 million opposing California’s Proposition 40, a proposed one-time 5% wealth tax on billionaires with fortunes exceeding $1.1 billion. He said opponents outspent supporters on advertising by a staggering 250 to 1. “The result: They got a ‘whopping’ 52%,” Sanders wrote.
The Democratic Socialist stated that he has got “bad news” for these “Oligarchs,” adding, “Your victory is fleeting,” while promising that Congress would eventually pass a federal billionaire wealth tax.
California Billionaire Tax Faces Defeat
On Monday, California voters rejected Prop 40, intended to fund healthcare and address state budget gaps. The measure faced opposition amid divisions among Democrats and labor unions. Governor Gavin Newsom had also warned that the tax could drive wealthy residents out of California, potentially eroding the state’s income tax revenue.
The proposal targeted a state with roughly 200 billionaires, including Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg, other tech CEOs, as well as several Hollywood personalities. Its defeat followed nearly a week of vote counting after the midterm election.
Meta has struck an 8-year agreement with Zuckerberg to keep him in California or wherever the company is headquartered, amid Proposition 40. In exchange, the CEO will receive non-voting Class C shares that he can sell if voters approve the tax, potentially helping cover a multibillion-dollar liability. He could immediately sell 20% of the new shares while retaining voting control.
In August, Sanders criticized Sergey Brin, the co-founder of Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, for spending $102 million to oppose California’s proposed billionaire tax, including a recent $20 million contribution to an advocacy group. Sanders also highlighted Brin’s wealth gains since President Donald Trump’s election. Brin had compared the proposed tax to the socialism he experienced growing up in the Soviet Union, warning it could lead to an oppressive society in California.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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