California's Proposition 40 would impose a one-time 5% tax on residents and trusts with assets over $1 billion, affecting an estimated 200 billionaires, with revenue going mainly to healthcare, food assistance and education. With 60% of votes counted on Wednesday, the measure was trailing by over 11 percentage points, though the race had not yet been formally called. Big Tech opposition was fierce, with Google co-founder Sergey Brin reportedly contributing $102 million to a committee fighting the measure. Outgoing Governor Gavin Newsom also opposed it, arguing that billionaires would both dodge the tax and leave the state. Nationally, voters in Texas flipped a Senate seat to Democrats despite Elon Musk spending more than $200 million to keep it in Republican hands.
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