A contentious tax proposal targeting billionaires has gathered sufficient signatures to be listed on the ballot this November. This was confirmed by the union leading the initiative.
Supporters of the Healthcare Executive Compensation Act have turned in over a million signatures to the California Attorney General and various county registrars, marking a significant milestone toward getting this measure on the November 2026 ballot, according to a recent statement by the group.
The proposed tax, originated by the Service Employees International Union and the Western Health Care Workers Federation, would introduce a one-time 5% tax on California residents whose assets exceed $1 billion.
However, many, including prominent Democrats like Governor Gavin Newsom, oppose the bill, fearing it could lead to a departure of wealthy individuals and businesses from the state.
“I believe this will not succeed,” Newsom remarked earlier this year. “I will do whatever is necessary to safeguard the state.”
Officials from Silicon Valley, including Sergey Brin and Ron Conway, have also voiced their discontent, funding efforts to oppose the bill while supporting alternative measures that aim to dilute it.
Some billionaires have already left California, including names like Larry Page, Brin, and Peter Thiel.
While the proposal is now on the ballot, it still needs voter approval, which could be tricky given the mixed public opinions. Current polling indicates about half support the measure, with 28% against it and 23% undecided. Concerns about potential business exodus and tax hikes have also been raised.
On a national scale, figures like Bernie Sanders have gained traction in California, suggesting that billionaires possess an “addiction” to wealth. Sanders had even been advocating for a wealth tax in Los Angeles earlier this year.
Supporters assert that the tax is essential to fill healthcare funding gaps caused by cuts to Medicaid and other federal programs from the last year.
“Every signature is a testament to patients, family members, and frustrated healthcare workers,” noted Zelda Aaron, a social worker at San Bernardino Community Hospital. “People realize that while executives are earning millions, healthcare costs keep climbing. This initiative aims to direct funds to where they matter: patient care and the dedicated staff providing it.”
If approved, the bill may spark significant political disputes, as opponents are likely to promote rival initiatives aimed at weakening it. Some of these could involve banning taxes on personal assets and reallocating the tax revenue to schools, leading to potential legal challenges.
“We’re trading a one-time revenue increase for ongoing losses that will ultimately lead to cuts in schools and healthcare,” argued Dan Newman, a spokesperson for the opposing group supported in part by Conway.
According to California law, if another bill is passed, the one with the most “yes” votes would take precedence, adding possible confusion for voters.
