Proposal to Tax Billionaires in California Moves Forward
SACRAMENTO, Calif. — A proposal aimed at introducing a temporary tax on billionaires in California has gathered enough support to potentially make it onto the November ballot, according to information released by a union backing the initiative.
This measure, supported by the Western Service Workers Union International, plans to levy a one-time 5% tax on individuals with a net worth exceeding $1 billion who are residents of California by January 1, 2026. The intent behind this taxation is to raise approximately $100 billion, largely aimed at compensating for cuts in federal funding for healthcare services catering to low-income individuals.
“California’s health is at stake,” said Liz Perlman, executive director of a prominent labor union. She emphasized the dire consequences: “Hospitals will close, and people will die. Why? So billionaires get tax breaks they don’t require.”
Before the proposal appears on the ballot, California’s Secretary of State must verify the signatures collected. Supporters report they have already amassed over 1.5 million signatures, significantly surpassing the roughly 875,000 required. It’s common in California for ballot initiative campaigns to financially incentivize signature gathering. The cost usually hovers around $15 per signature.
If this measure is placed before voters in November, it could trigger one of the most expensive ballot fights in history, drawing national attention as it gauges public sentiment on taxing the wealthy. Opposition efforts have amassed millions in funding and sparked proposals to repeal the tax. Interestingly, Vermont Senator Bernie Sanders is advocating for the initiative.
Democratic Governor Gavin Newsom, along with technology leaders from Silicon Valley, stands firmly against the proposal. They argue that it might drive some of the richest residents out of the state, given that nearly half of California’s personal income tax revenue is sourced from the wealthiest 1%. Some individuals have reportedly already sought properties outside the state as a precaution against the tax passing.
Tax consultant David Lesperance remarked on the situation, stating, “After a bout since October, SEIU has successfully gathered enough signatures to ignite the ‘Tax the Rich’ wildfire.” He noted that many wealthy individuals targeted by this initiative have begun making plans to relocate to other states.
Brian Brokaw, an experienced adviser to Newsom who leads an opposing political committee, criticized the bill for its flawed structure and potential adverse effects on the state budget. He stated, “Implementing a so-called wealth tax in one state would have implications for all 40 million Californians, not just a select few. This proposal could yield long-term losses in exchange for fleeting revenue spikes.”
According to an assessment, at least 25 billionaires listed among the 2025 World’s 500 Richest People by Forbes either live in California or have substantial ties to the state. However, many own real estate elsewhere, making the determination of their residency somewhat contentious.
