Sacramento, California– A Controversial proposal A California labor union supporting the measure said Monday that a resolution to temporarily raise taxes on billionaires has enough signatures to qualify for the November election.
The proposal, backed by the Health Service Employees International Union of Health Care Workers West, would impose a one-time, 5% tax on individuals with a net worth of more than $1 billion who were living in the state as of Jan. 1, 2026. The goal is to generate $100 billion in revenue, which would be used largely to offset federal funding cuts to low-income health care.
“California’s health is at stake,” said Liz Pearlman, executive director of a chapter of the American Federation of State, County and Municipal Employees, a large labor union. “Hospitals are closing and people are going to die. Why? So billionaires can get another tax cut they don’t need.”
The California Secretary of State must still verify the signatures and officially place the measure on the ballot. Supporters say they have collected more than 1.5 million signatures, far more than the 875,000 signatures they needed.
If the measure goes before voters in November, it could create one of the most expensive ballot battles ever and draw national attention as a test of voters’ attitudes on raising taxes on the rich. Senator Bernie Sanders of Vermont has already traveled to California to promote the idea.
Meanwhile, Democratic Gov. Gavin Newsom and Silicon Valley tech moguls are vehemently opposed. They warn it will drive California’s wealthiest residents out of the state. Nearly half of California’s personal income tax revenue Comes from the top 1% of earners. Some have already purchased out-of-state properties if they are successful.
“After playing games since October, SEIU has sparked a wildfire by getting enough signatures,” said David Lesperance, a tax consultant who has advised some of his wealthy clients who left California because of the proposal. “Many of the billionaires targeted have already responded to their efforts by implementing fire escape plans by relocating to other states.”
Brian Brokaw, a longtime adviser to Newsom who leads a political committee that opposes the tax, said the measure was poorly prepared and would deal a major blow to the state budget.
“Enacting a so-called wealth tax in just one state will not target a small group, but will affect all of California’s 40 million residents,” he said in a statement. “This proposal replaces short-term revenue increases with long-term losses.”
At least 25 billionaires listed in Forbes magazine’s 2025 rankings of the world’s 500 richest people either live in California or have some significant ties to the state, based on a review by The Associated Press. But determining whether they are full-time residents or just frequent visitors can become a contentious issue, because many of them own property elsewhere.
the Big tax and spending cuts President Donald Trump last year signed the will Reducing more than $1 trillion Nationwide over a decade of federal Medicaid and food assistance.