Voters in California have rejected Proposition 40, a proposed one-time 5 percent tax on residents with a net worth exceeding $1 billion, according to Associated Press projections showing the "no" vote leading at 55.6 percent. Championed by Senator Bernie Sanders to offset federal funding cuts and raise $100 billion for healthcare, education, and food assistance, the measure faced defeat after opposition from outgoing Democratic Governor Gavin Newsom and division among party leaders. Newsom, along with California billionaires like Sergey Brin who spent over $250 million campaigning against it, argued the tax would drive ultrawealthy entrepreneurs and job creators out of the state. Despite this setback for progressive Democrats following their nationwide midterm victories, incoming Senate Finance Committee Chairman Ron Wyden reaffirmed that taxing billionaires remains a primary federal priority.