A proposal to raise taxes on the wealthiest Californians is one step closer to appearing on the November ballot after the labor union supporting it said Monday it would submit far more than the required number of signatures to qualify.
The “billionaire tax” initiative seeks to implement a one-time 5% tax on the assets of Californians whose net worth exceeds $1.1 billion. It would also require the state to spend the resulting revenue almost entirely on healthcare.
Members of Service Employees International Union-United Healthcare Workers West, the union that drafted the proposal, said Monday that they’d collected more than 1.5 million signatures for petitions calling for the proposed tax — nearly twice the required number of valid signatures — and that they’d submit them immediately to state officials.
State officials will now begin the verification process, and if they conclude that 875,000 are valid, the measure would be placed on the November ballot.
“Ultra-wealthy billionaires have seen their fortunes skyrocket even as food, rent, gas prices increasingly crush working families who are struggling to stay afloat, " Mayra Castañeda, a member of SEIU United Healthcare Workers West, said at a news conference Monday. "So when hospitals are already starting to cut services, clinics are closing and families are set to lose healthcare coverage, we say that those who have prospered from here in California can afford to invest a little more in keeping California running.”
In addition to the one-time tax on those worth more than $1.1 billion, it would implement a smaller tax on individuals worth between $1 billion and $1.1 billion. The taxes would apply retroactively to anyone living in the state Jan. 1, 2026.
Proponents say the tax is necessary to fill in the budget shortfalls that California will face because of Medicaid cuts that were a part of the Big Beautiful Bill that President Donald Trump signed into law. Critics claim it will result in the rapid flight from the state of wealthy individuals, investors and tech leaders, creating even larger budget problems.
The proposal has already sharply divided California Democrats. Gov. Gavin Newsom, who is considering a 2028 presidential bid, opposes the proposal and has thwarted legislation related to wealth taxes. Meanwhile, another potential White House contender, Rep. Ro Khanna, D-Calif., supports the billionaire tax.
The proposal has also shaped the race to succeed Newsom as governor, with former Rep. Katie Porter and former U.S. Health and Human Services Secretary Xavier Becerra opposed to it and billionaire activist Tom Steyer supporting it.
