California is irate with billionaires: the one-time wealth tax will be on the November ballot

(SeaPRwire) –   A contentious proposal in California to temporarily increase taxes on billionaires has gathered sufficient signatures to qualify for the November ballot, a labor union supporting the measure announced Monday.

The initiative, backed by the Service Employees International Union Healthcare Workers West, aims to impose a one-time, 5% tax on individuals whose net worth exceeds $1 billion and who were residents of the state as of January 1, 2026. The objective is to generate $100 billion in revenue, primarily designated to offset federal funding reductions for healthcare services for low-income individuals.

“California’s health is in jeopardy,” stated Liz Perlman, executive director of a chapter of the American Federation of State, County and Municipal Employees, a major labor union. “Hospitals are closing, and lives will be lost. Why? So billionaires can receive another tax cut they do not require.”

The California Secretary of State is still required to verify the signatures and formally place the measure on the ballot. Proponents claim they collected over 1.5 million signatures, significantly exceeding the approximately 875,000 needed. California permits ballot initiative campaigns to compensate individuals for each signature they gather. The expense of collecting petition signatures can vary widely, but it typically averages around $15 per signature.

Should the measure proceed to voters in November, it could spark one of the most costly ballot contests ever and will attract national attention as a benchmark for voter sentiment on increasing taxes for the wealthy. Vermont Senator Bernie Sanders has actively campaigned in favor of the idea. Conversely, Google founder Sergey Brin has already donated $57 million to a political committee named “Building a Better California,” which supports various initiatives designed to mitigate the billionaires’ tax. This committee has raised over $90 million, including Brin’s contributions, from fewer than a dozen donors.

Democratic Governor Gavin Newsom and prominent Silicon Valley tech executives are adamantly opposed. They caution that it will prompt California’s wealthiest residents to leave the state. Nearly half of California’s personal income tax revenue originates from the top 1% of earners. Some individuals have reportedly already acquired properties outside the state in anticipation of its potential passage.

“After engaging in risky maneuvers since October, the SEIU has successfully ignited a ‘Tax the Rich’ wildfire by securing enough signatures,” commented David Lesperance, a tax consultant who has advised some of his wealthy clients who departed California due to the proposal. “The numerous billionaire targets of their efforts have already responded by implementing contingency plans, relocating to other states.”

Brian Brokaw, a long-standing advisor to Newsom and leader of a political committee opposing the tax, asserted that the measure was poorly drafted and would inflict a substantial blow to the state’s budget.

“Implementing a so-called wealth tax in a single state would not merely affect a small segment of the population — it would have consequences for all 40 million Californians,” he declared in a statement. “This proposition exchanges a temporary increase in revenue for enduring financial setbacks.”

An Associated Press review indicates that at least 25 billionaires, listed among Forbes magazine’s 2025 rankings of the world’s 500 wealthiest individuals, either resided in California or maintained significant connections to the state. However, establishing whether they were permanent residents or merely frequent visitors could become a point of contention, given that many possess properties in other locations.

The substantial tax and spending reduction legislation signed by President Donald Trump last year is projected to cut over $1 trillion nationwide from Medicaid and federal food assistance programs over a ten-year period.

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Associated Press writer Michael R. Blood, based in Los Angeles, contributed to this report.