A controversial proposal to impose a one-time 5% tax on the wealth of California’s billionaires is set to appear on the November ballot.
The initiative, backed by the Service Employees International Union-United Healthcare Workers West, aims to counteract healthcare funding cuts from the Trump administration’s tax reform package, known as the “One Big Beautiful Bill Act.” The proposed tax targets individuals with a net worth exceeding $1 billion as of January 1, 2026, and is expected to generate $100 billion, with 90% allocated to healthcare and 10% to education and food assistance programs.
California Governor Gavin Newsom opposes the measure, arguing that it could exacerbate the state’s budget volatility and drive wealthy residents out of California. Newsom has suggested a nationwide wealth tax instead. The proposal has sparked fierce opposition from Silicon Valley elites, including Google co-founder Sergey Brin, who reportedly moved to Nevada due to the tax threat. Brin and other tech leaders have contributed millions to campaigns opposing the tax.
Two rival initiatives, the Retirement and Personal Savings Protection Act and the Improving Transparency, Effectiveness, and Efficiency in California Government Act, will also appear on the ballot. These measures could nullify the billionaire tax if passed. Ballotpedia reports that the tax would apply retroactively, raising constitutional concerns and potential legal challenges.
Despite these challenges, early polling shows 50% of voters support the tax. The outcome remains uncertain as the election approaches, with significant implications for California’s fiscal future.
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