Key facts
- A proposed one-time 5% tax on California residents with over $1 billion in assets is facing opposition.
- Governor Gavin Newsom has vowed to stop the billionaire tax measure.
- The deadline for measures to qualify for the November ballot is June 25.
- SEIU-UHW submitted 1.55 million signatures to qualify the tax.
- The California Teachers Association and Planned Parenthood Affiliates of California oppose the tax.
California Governor Gavin Newsom is actively working to prevent a proposed one-time 5% tax on residents with over $1 billion in assets from appearing on the November ballot. The measure, known as the billionaire tax, was put forward by the healthcare workers union SEIU-UHW, which submitted 1.55 million signatures, significantly more than the roughly 875,000 required to qualify for the ballot.
Newsom has publicly stated his opposition to the tax, previously telling The New York Times in January that he believed it could hinder innovation and that he would "do what I have to do to protect the state." With the June 25 deadline for ballot qualification approaching, several California groups that typically align with Democrats are now publicly opposing the initiative and urging proponents to withdraw it. These include the California Teachers Association, which stated the tax would not provide sustainable funding for schools, and Planned Parenthood Affiliates of California, along with several other labor groups.
Supporters of the measure, such as progressive Representative Ro Khanna and the labor union Teamsters California, argue that the tax would generate substantial funds for healthcare, education, and food assistance programs. Conversely, opponents contend that it could drive billionaires and their future tax contributions out of California. As of January 1, California was home to over 200 billionaires who could be impacted by the tax. While some wealthy individuals, like Google cofounder Larry Page, have relocated from the state, others, such as Nvidia CEO Jensen Huang, have expressed acceptance of the tax.