California’s billionaire tax faces defeat, but Democrats plan higher taxes on the wealthy

California’s proposed billionaire tax appears headed for defeat, but the outcome is expected to push Democrats in Congress toward federal tax increases on high earners, according to tax experts. The state measure would have targeted the wealthiest residents, and its failure is seen as a signal that similar efforts may fare better at the national level. The shift matters because it could revive momentum for higher taxes on top incomes in upcoming federal budget negotiations. What to watch next is whether Democratic leaders translate the state-level setback into concrete federal proposals and how Republicans respond.