California votes on first state tax on billionaires' wealth

California voters decided on Tuesday whether to become the first US state to tax the net worth of billionaires. Proposition 40 would impose a one-time 5% tax on residents whose net worth exceeds $1 billion, with most of the money going to replace federal healthcare funding cuts, ABC News reports. The fight became one of the most expensive ballot battles in state history: the "no" side raised roughly 10 times as much as the "yes" side, largely from tech moguls and venture capitalists funding a political action committee against it. Sen. Bernie Sanders backs the measure; Gov. Gavin Newsom warns the wealthiest would move away and take their tax money with them. Billionaires were already bracing for its approval, weighing whether to pay or leave.