California voters block future wealth taxes in major defeat for billionaire tax campaign - report

California voters approved a constitutional amendment banning new state taxes on personal assets, including investments, retirement savings, and business holdings, the Associated Press reported Friday.Proposition 42 secured just over 51% of the vote, compared with nearly 49% opposed, with approximately 96% of ballots counted. The measure had maintained a narrow lead since vote counting began on November 3.The amendment prohibits California from introducing new taxes on the ownership of personal property, including 401(k) retirement accounts, financial investments, digital assets, intellectual property and business interests. Real estate is excluded from the restrictions.It also prohibits retroactive state taxes, except in cases of a state-declared emergency. The measure restricts the state's ability to introduce new taxes on accumulated personal wealth, although existing income taxes remain unaffected.The vote follows the defeat of Proposition 40, a separate ballot initiative that sought to impose a one-time 5% tax on California billionaires. The proposed tax was intended to raise revenue primarily for healthcare, with additional funding for education and food assistance.Tech billionaires backed campaign against wealth taxProposition 42 was introduced as a competing measure designed to prevent Proposition 40 from taking effect. Had voters approved both initiatives, the measure receiving more affirmative votes would generally have prevailed.Although voters independently rejected Proposition 40, the passage of Proposition 42 creates a constitutional barrier to similar wealth tax proposals in…