A proposed one-time 5% percent wealth tax on billionaires will appear on the November ballot after a strong showing of public support, garnering around 1.6 million signatures.
Advocates for the measure announced Sunday that it had received enough signatures to head to a vote. If approved, the measure — proposed by Service Employees International Union-United Healthcare Workers West (SEIU-UHW), a labor union representing more than 120,000 health care workers in California — is projected to raise around $100 billion over the next five years, according to an analysis by the Institute on Taxation and Economic Policy.
The “2026 Billionaire Tax Act” would allocate 90% of its new revenues to healthcare programs like Medi-Cal, California’s Medicaid program, which faced funding cuts last year under the Trump administration. The remaining funds would support food assistance and education programs, such as the Supplemental Nutrition Assistance Program.
Opponents, including Gov. Gavin Newsom, have vowed to fight the proposal. In an interview with the New York Times early this year, Newsom said he would work to defeat it if it makes it to the ballot, arguing it could harm California’s tech industry and economy by encouraging the state’s wealthiest residents to relocate. The industry contributes more than $20 billion annually to state revenue and drives at least $2.6 billion in annual state growth, according to a 2025 report by the Chamber of Progress.
Jack Barcal, an associate professor of accounting who specializes in taxation, said the proposal could discourage wealth creation.
“I think we should emulate these individuals and encourage them rather than try to punish them,” Barcal said. “What history tells us is that when we try to do something like this, the people will react and they’ll simply leave the state.”
Rival ballot measures funded by Google co-founder Sergey Brin and other billionaires are gaining momentum from some of California’s wealthiest residents, including cryptocurrency magnate Chris Larsen and Silicon Valley mogul Tim Draper, according to Fortune. The initiatives focus on prohibiting state taxes on personal financial assets and requiring audits or programs funded by new taxes.
A study by consultants who previously worked under former governors Arnold Schwarzenegger (a Republican) and Jerry Brown (a Democrat) estimates that the tax measure will disrupt the start-up industry, accounting for the loss of over 100,000 high-paying jobs, as well as billions of dollars in tax revenue over the next two decades.
Barcal said the tax could have long-term economic consequences for the state’s future.
“I think what will happen is the billionaires in California will leave and simply go to other states. Companies that have been here a long time are leaving California and establishing their main headquarters in Texas and other states,” Barcal said.
An analysis by the California Legislative Analyst’s Office found that while the tax could generate tens of billions of dollars in the short term, it may lead to an ongoing decrease in state income tax revenues by hundreds of millions annually.
Valerie Chun, a freshman studying public policy, said she plans to vote in favor of the measure.
“We’re not creating more money. We’re simply redistributing it,” Chun said. “I think it will be helpful for people who rely on things like Medicare or Medicaid.”
During a press conference the morning of April 27, the SEIU-UHW said the tax on the approximately 200 CA billionaires will protect healthcare jobs and ensure care for working families.
Cecilia Gomez-Gonzalez, a patient who attended a press conference with SEIU-UHW on April 27 said long wait times for care have already affected her family. Her husband, who requires costly monthly prescriptions following a heart attack, waited months to see a cardiologist.
“That was really hard because you never know what needs to be done right now, what other care he needed,” Gomez-Gonzalez said.
“California is now under serious threat. Our healthcare system is nearing a breaking point,” SEIU-UHW Executive Committee Member Mayra Castaneda said at the press conference April 27. “Those who have prospered from here in California can afford to invest a little more in keeping California running.”