Photo: FREDERIC J. BROWN / AFP / Getty Images
California voters will decide on a proposed billionaire tax in the upcoming November election. The initiative seeks to impose a one-time 5% tax on the net worth of billionaires residing in the state as of January 1, 2026. Proponents argue this measure will generate $100 billion to offset federal healthcare cuts from a Republican spending bill signed by President Trump last year. The tax, if approved, will fund Medi-Cal, education, and food assistance programs.
Democratic Governor Gavin Newsom opposes the tax, fearing it will drive billionaires out of California and harm the state's tax base. The proposal, backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), has garnered support from prominent figures like Senator Bernie Sanders and Representative Ro Khanna. However, it faces opposition from tech industry leaders, including Google co-founder Sergey Brin and crypto billionaire Chris Larsen, who have funded campaigns against it.
The tax initiative has sparked debate among labor unions and progressive lawmakers, some of whom question its feasibility and potential legal challenges. Critics, including the California Teachers Association and Planned Parenthood Affiliates of California, argue the measure lacks a sustainable funding path. Despite these concerns, polling indicates the tax has support from a majority of California voters.
The billionaire tax will be one of three tax-related measures on the November ballot, leading to anticipated voter confusion and increased campaign spending. As the election approaches, Californians can expect a surge in advertisements and outreach efforts from both supporters and opponents of the initiative.