Additional Coverage:
- Billionaire tax proposal in California is on track to qualify for the ballot, backers say (apnews.com)
SACRAMENTO, Calif. – A contentious California initiative aiming to temporarily increase taxes on billionaires has reportedly gathered enough signatures to appear on the November ballot, according to a labor union supporting the measure.
Sponsored by the Service Employees International Union Healthcare Workers West, the proposal calls for a one-time 5% tax on individuals with a net worth exceeding $1 billion who reside in California as of January 1, 2026. The measure aims to raise approximately $100 billion, primarily to compensate for federal funding reductions affecting healthcare services for low-income residents.
“California’s health is at stake,” stated Liz Perlman, executive director of a chapter of the American Federation of State, County and Municipal Employees. “Hospitals are closing and people will die.
Why? So billionaires can get another tax cut that they don’t need.”
While the California Secretary of State must still verify the signatures and officially place the initiative on the ballot, supporters claim to have collected over 1.5 million signatures, well surpassing the roughly 875,000 required.
Should voters approve the measure in November, it is expected to trigger one of the most expensive ballot battles in state history and draw national attention as a key indicator of public sentiment toward taxing the wealthy. Senator Bernie Sanders of Vermont has already campaigned in California in favor of the proposal.
Opposition comes from Democratic Governor Gavin Newsom and influential figures in Silicon Valley, who argue the tax could prompt wealthy residents to leave the state. Nearly half of California’s personal income tax revenue comes from the top 1% of earners, and some affluent individuals have reportedly acquired out-of-state properties in anticipation of the tax’s passage.
David Lesperance, a tax consultant advising some high-net-worth clients who have left California, remarked, “After playing with matches since October, the SEIU has succeeded in lighting a ‘Tax the Rich’ wildfire by getting enough signatures. Many billionaire targets have responded by executing fire escape plans by relocating to other states.”
Brian Brokaw, a senior adviser to Governor Newsom and leader of a political committee opposing the measure, criticized the initiative’s design and warned of significant budgetary harm. “Enacting a so-called wealth tax in just one state wouldn’t target a small group – it would impact all 40 million Californians,” Brokaw said. “This proposal trades a short-term revenue bump for long-term losses.”
A review by The Associated Press found that at least 25 billionaires listed in Forbes magazine’s 2025 ranking of the world’s 500 wealthiest individuals either reside in California or have substantial ties to the state. However, residency status may become a contentious issue, as many maintain properties in multiple locations.
The backdrop for this initiative includes federal cuts signed into law last year under President Donald Trump, which will reduce Medicaid and food assistance funding by more than $1 trillion nationwide over the next decade. Proponents argue that the proposed tax is necessary to fill the resulting gaps in healthcare funding for California’s vulnerable populations.