Supporters of California's proposed billionaire tax say they have gathered enough signatures to put the measure before voters in November, setting up a fight over whether the state should impose a one-time 5% wealth tax on its richest residents.
More than 1.5 million people signed petitions for the initiative, people familiar with the campaign told The Wall Street Journal. County officials still must verify the signatures, but supporters say they expect to clear the roughly 875,000-signature requirement.
The Service Employees International Union-United Healthcare Workers West, which represents more than 120,000 healthcare workers, proposed the tax to offset healthcare funding cuts tied to President Donald Trump's tax-cuts-and-spending law.
"When our growing coalition files these signatures, David will have won the first round against Goliath," Suzanne Jimenez, a spokeswoman for the Billionaire Tax Now coalition, said in a statement Sunday.
If approved, the tax would apply to people who lived in California as of Jan. 1 and have a net worth of $1 billion or more at year's end. SEIU-UHW says about 200 people would be affected.
The measure still must be certified in time for the November ballot and then win majority support from voters. Opponents are expected to argue the tax would punish success, drive wealth out of California, and further damage a state already struggling with high taxes, high costs, and outmigration.
Democrat Gov. Gavin Newsom opposes the measure and has warned it could push wealthy residents to leave. Several billionaires and business leaders have criticized the proposal as anti-innovation and economically risky.
Opponents, including Google co-founder Sergey Brin, have poured tens of millions of dollars into rival ballot measures aimed at blocking parts of the wealth tax plan. One proposal would bar retroactive taxes and ban new taxes on personal property, including retirement savings, stocks, bonds, and intellectual property.
The tax has drawn support from progressive Democrats, including Sen. Bernie Sanders, I-Vt., and Rep. Ro Khanna, D-Calif. Nvidia CEO Jensen Huang has said he is "perfectly fine" with the proposal.
SEIU-UHW President Dave Regan said looming Medicaid cuts would lead to lost healthcare jobs, sicker Californians, and higher private insurance premiums unless the state finds new revenue.
"This did not start as a political statement about rising inequality — we are simply trying to solve a huge and immediate and practical problem," Regan said in a statement.
A UC Berkeley Institute of Government Studies poll released last month found 52% of California voters inclined to back the tax, 33% opposed, and 15% undecided.
SEIU-UHW estimates the tax would raise about $100 billion, arguing California will keep creating new wealth even if some billionaires leave.
Critics say the math is far less certain. A California Tax Foundation analysis estimated the measure could reduce state revenue by $3.53 billion to $4.49 billion annually "due to billionaire departures and their economic spillover effects."
The nonpartisan Legislative Analyst's Office has said the tax would likely raise "tens of billions" in one-time revenue, while costing "hundreds of millions of dollars or more" each year if some billionaires leave.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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