California voters have approved Proposition 42, a constitutional amendment banning new state taxes on financial assets and other personal property, excluding real estate, according to an AP race call. The measure follows the defeat of a proposed billionaire wealth tax. * Election Results: Prop 42 led by 2.6 percentage points with an estimated 96% of votes counted from November 3. Prop 40, proposing a one-time 5% tax on billionaires' net assets to offset Medicaid cuts, failed to secure a majority. * Billionaire Backing: Google co-founder Sergey Brin, venture capitalist John Doerr and Stripe co-founder Patrick Collison helped fund a nearly $400M campaign against the wealth tax, including competing ballot measures. The effort forced proponents to spend heavily on signatures and left fewer resources to counter opposition ads. * Tax Restrictions: Prop 42 creates a constitutional barrier to future state wealth taxes through legislation, though voters could approve another constitutional amendment to reverse it. * Next Steps: The healthcare union behind Prop 40 is considering another billionaire-tax initiative in 2028 if Medicaid cuts remain in place. 14-NOV-2026 08:23 AM ET