A sweeping proposal to tax California's wealthiest residents cleared a major hurdle Monday when the union backing it announced it had gathered more than 1.5 million petition signatures, nearly double what the state requires to place the measure on November's ballot.
The Service Employees International Union, which drafted the initiative, said it would immediately submit the signatures to state officials for verification. If at least 875,000 prove valid, the "billionaire tax" will appear before voters this fall.
The measure would impose a one-time 5% tax on Californians with net worth exceeding $1.1 billion, plus a smaller levy on those worth between $1 billion and $1.1 billion. The taxes would apply retroactively to anyone living in the state on January 1, 2026. Revenue from the initiative would be directed almost entirely toward health care.
Supporters frame the tax as essential to plug budget holes created by anticipated Medicaid cuts tied to federal policy. Mayra Castañeda, a union representative, made the case at Monday's news conference: "Ultra wealthy billionaires have seen their fortunes skyrocket even as food, rent, gas prices increasingly crush working families who are struggling to stay afloat. So when hospitals are already starting to cut services, clinics are closing and families are set to lose healthcare coverage, we say that those who have prospered here in California can afford to invest a little more in keeping California running."
The proposal has ignited a rare split within California's Democratic establishment. Governor Gavin Newsom, whose potential presidential ambitions for 2028 are well known, opposes the measure and has previously blocked wealth tax legislation. Congressman Ro Khanna, another potential White House candidate, backs it.
The divide extends to the state's race for Newsom's successor. Former Representative Katie Porter and former U.S. Health Secretary Xavier Becerra stand against the tax, while billionaire activist Tom Steyer supports it.
Critics argue the tax would trigger an exodus of wealthy individuals and tech leaders from California, worsening rather than solving budget problems. Supporters counter that the state's most affluent residents have benefited from decades of economic growth and should shoulder additional responsibility during a fiscal crisis.
State officials will begin verifying the submitted signatures in the coming weeks. The validation process will determine whether enough valid signatures exist to qualify the measure for the November general election ballot.
Author Sarah Mitchell: "This measure could reshape how California finances health care, but the battle lines forming around it suggest the real fight is just beginning."
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