California billionaire tax proposal moves to November ballot despite fierce opposition
Billionaire Tax qualifies for CA November ballot
The measure aims to generate $100 billion to bridge healthcare funding gaps caused by federal cuts to Medicaid and food assistance.
LOS ANGELES - California voters will consider a controversial ballot measure this November that proposes a temporary tax increase on the state’s ultra-wealthy.
What we know:
The initiative, spearheaded by the Service Employees International Union Healthcare Workers West (SEIU-UHW), proposes a one-time 5% tax on individuals residing in California as of January 1, 2026, with a net worth exceeding $1 billion.
The measure intends to raise $100 billion, with the primary goal of funding the state’s Medicaid system following federal budget cuts.
Because California relies on its top 1% of earners for nearly half of its personal income tax revenue, the proposal has drawn sharp criticism.
Governor Gavin Newsom, along with a broad coalition of healthcare, education, and housing groups—such as the California Medical Association and the California School Boards Association—strongly oppose the measure.
Critics argue that the tax will create severe revenue volatility and drive the state's wealthiest residents to relocate, taking their ongoing income tax contributions with them. The nonpartisan Legislative Analyst’s Office estimates that while the tax would generate tens of billions initially, it would subsequently cause annual income tax revenues to drop by hundreds of millions of dollars.
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Opponents have already mobilized; Google co-founder Sergey Brin has donated $82 million to an opposition committee called Building a Better California, which has raised over $118 million to defeat the measure.
What we don't know:
It remains unclear exactly how many of California's billionaires will successfully move their assets or official residencies out of state to avoid the tax before it can be enforced.
Additionally, while the union attempted to negotiate a compromise last week by offering to lower the proposed rate to 2%, it is unknown if they will make further attempts to scale back the measure or how voters will ultimately respond to the heavy advertising campaigns mounting on both sides.
What they're saying:
"I am all in on this," Dave Regan, SEIU-UHW Union President, said during a Zoom call, adding that opponents of the proposal are "totally out of touch."
"The dangerous wealth tax directly threatens vital funding for education and schools, healthcare and clinics, public safety, and infrastructure projects by making California’s revenue even more volatile," a coalition of healthcare, education, and housing groups stated.
Brian Brokaw, Newsom political adviser and opposition committee leader, stated the tax would "make California’s biggest challenges worse," adding, "Driving away the state’s sustainable tax base for a one-time grab is bad policy and an even worse deal for 40 million Californians who will be left holding the bag."
What's next:
The battle will head directly to the voters this November.
The Source: This report is based on official campaign announcements, financial disclosure data from the political committee Building a Better California, and formal public statements issued by Governor Gavin Newsom’s office, the SEIU-UHW, and a coalition of state healthcare and education associations.