A proposal to impose a one-time tax on California’s wealthiest residents is set to be on the November ballot. Secretary of State Shirley Weber confirmed that the measure, commonly referred to as the billionaire tax, has cleared the necessary signature requirements as of Wednesday and will be certified by June 25. The health-care union advocating for this initiative, the Service Employees International Union West, can still decide to withdraw the proposal before the final approval date.
If it goes through, the tax would apply a rate of up to 5% on the net worth of billionaires residing in California, retroactive to January 1, 2026, specifically targeting those with a net worth of $1.1 billion or greater. Some assets, like directly held real estate and certain retirement accounts, would be exempt from this tax.
The plan outlines that 90% of the collected revenue is to be allocated for health care, while the remaining 10% would be split between education funding and food assistance programs. Proponents estimate this could generate around $100 billion.
Supporters state that the revenue is crucial to address a budget shortfall resulting from federal funding cuts linked to President Trump’s recent budget law. They argue the funds could prevent closures of hospital emergency rooms and nursing homes throughout the state.
Notable figures backing the tax include Rep. Ro Khanna (D-Calif.) and Senator Bernie Sanders (I-Vt.), both of whom see the measure as a step toward reducing wealth inequality. NVIDIA CEO Jensen Huang has publicly expressed his willingness to pay the tax, with estimates suggesting he could owe around $8.5 billion.
On the flip side, significant opposition exists among several prominent Democrats. Governor Gavin Newsom has voiced strong resistance, stating, “This will be defeated,” in an interview with the New York Times. He emphasized his commitment to safeguarding the state against such measures.
Even organizations like the California Teachers Association and affiliates of Planned Parenthood have withheld support for the proposal. Critics argue that the tax could deter job creation and investment, potentially accelerating the trend of affluent individuals and businesses leaving California.
In fact, well-known tech figures, including Google co-founders Larry Page and Sergey Brin, have already begun relocating some assets out of the state, while Palantir co-founder Peter Thiel is reportedly contemplating a similar move. Should the proposal find approval in November, it would only need a simple majority to pass.
