California voters rejected Proposition 40, the billionaire tax, which had divided Democrats with opponents saying it would drive the wealthy from the state. Jae C. Hong/AP hide caption

Jae C. Hong/AP

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California voters have rejected a proposal to charge billionaires a one-time 5% tax on most of their wealth, according to a race call by The Associated Press.

Proponents said the tax could raise $100 billion for healthcare. Led by a union that represents healthcare workers, the SEIU-UHW, advocates of the tax said the Republican-controlled Congress cut healthcare programs to give tax breaks to the wealthy, so it was time for the wealthy in California to fill the gap.…