A union-led campaign in California has advanced a proposed one-time wealth tax targeting billionaires, after the Service Employees International Union–United Healthcare Workers West (SEIU-UHW) announced it collected more than 1.55 million signatures—nearly double the 875,000 required—to place the measure on the ballot. The California Billionaire Tax Act would impose a 5% tax on the net worth of California residents with assets exceeding $1 billion, affecting approximately 200 individuals. If approved by voters in November, the tax would apply to anyone who was a California resident on January 1, 2026, with payments due in 2027 and the option to spread payments over five years with interest, according to the Legislative Analyst’s Office [1].
Supporters of the measure, including SEIU-UHW chief of staff Suzanne Jimenez, argue the tax is a necessary response to recent federal cuts to Medicaid and other health insurance programs, claiming it will help keep emergency rooms open and prevent California businesses from closing. Jimenez stated, "Most Californians and most billionaires recognize how reasonable and necessary this proposal is—both to keep emergency rooms open and to save California businesses from closing" [1].
Opponents, however, warn of significant negative economic consequences. The New York Times reported that the tax could result in the loss of an estimated 108,000 high-paying jobs over the next 20 years. Democratic Governor Gavin Newsom has also expressed opposition, citing concerns that the tax would drive wealthy residents and investment out of the state, thereby harming the economy. The Legislative Analyst’s Office projects a temporary surge in state revenue if the measure passes, but warns of an ongoing decrease in state income tax revenues of hundreds of millions of dollars or more annually as billionaires potentially leave California in response [1].
The measure has sparked debate between those who see it as a way to protect healthcare funding and those who fear it will damage California’s economic competitiveness and long-term fiscal health.
CONCLUSION
The California Billionaire Tax Act has gained significant momentum, with supporters touting its potential to safeguard healthcare funding and opponents warning of job losses and capital flight. The measure's advancement to the ballot sets the stage for a contentious debate with high stakes for the state's economy and public services.