California Governor Gavin Newsom is actively working to prevent a proposed billionaire tax initiative from appearing on the ballot. Billionaires Sergey Brin and Chris Larsen are funding opposition efforts, while some unions are also opposing the measure.
The outcome of Governor Newsom's efforts will determine whether a significant wealth tax proposal reaches California voters, potentially impacting state revenue and the political landscape surrounding taxation of the ultra-wealthy.
California Governor Gavin Newsom is actively working to prevent a proposed billionaire tax initiative from appearing on the ballot, engaging in outreach to unions and other groups. Billionaires Sergey Brin and Chris Larsen have committed significant funds to oppose the measure and support rival initiatives.
Some labor groups, like the Peace Officers Research Association of California, have voted to oppose the wealth tax, aiming to frame it as a conflict between the ultra-wealthy and working-class individuals such as teachers, cops, and construction workers. This strategy seeks to sow doubt among voters who might otherwise support taxing the rich.
Further challenges for proponents emerged from the June primary, where voters in San Francisco rejected a similar tax on top earners. Additionally, Tom Steyer, the only major Democratic gubernatorial candidate to endorse the statewide measure, was eliminated from the race, removing a key advocate.
Despite the opposition, proponents like SEIU-UHW argue the tax is crucial to offset federal budget cuts and prevent hospital closures and job losses. However, Newsom's office is intensifying pressure on the initiative's champions, such as Regan, who has a history of withdrawing ballot measures after securing deals. Parallel talks are underway concerning a business-backed initiative to limit tax increases, with the California Business Roundtable denouncing the wealth tax and collaborating with Chris Larsen to combat it.
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