California billionaire tax measure nears November ballot after signature push

Sacramanto — A California ballot proposal seeking a one-time 5% tax on billionaires has gathered enough signatures to qualify for the November election, backers said on Monday, setting up what could become one of the state’s most expensive and closely watched tax battles.

The measure, backed by Service Employees International Union Healthcare Workers West, would impose a temporary 5% tax on individuals with a net worth exceeding $1 billion who were living in California as of Jan. 1, 2026.Supporters say the tax would generate about $100 billion in revenue, with most of the funds intended to offset federal cuts to healthcare programs for low-income residents, particularly Medicaid-related services.

The California Secretary of State must still verify the petitions and formally certify the measure for the ballot. Organizers said they submitted more than 1.5 million signatures, well above the roughly 875,000 required to qualify.California permits ballot campaigns to pay petition circulators per signature, and signature gathering costs often average around $15 each, making statewide initiatives among the most expensive in the country.

“This is about protecting healthcare access,” said Liz Perlman, executive director of an American Federation of State, County and Municipal Employees chapter supporting the proposal. “Hospitals are closing and people will die. Why? So billionaires can get another tax cut that they don’t need.”The proposal has quickly emerged as a national test of public sentiment on taxing extreme wealth and could trigger a multimillion-dollar political fight involving labor unions, wealthy donors and Silicon Valley executives.

Vermont Senator Bernie Sanders has publicly backed the initiative, while Democratic Governor Gavin Newsom and prominent California technology investors have strongly opposed it, warning it could accelerate the departure of high-income residents from the state.

Nearly half of California’s personal income tax revenue comes from the top 1% of earners, making the state particularly sensitive to migration among wealthy taxpayers.“After playing with matches since October, the SEIU has succeeded in lighting a ‘Tax the Rich’ wildfire,” said David Lesperance, a tax consultant who advises wealthy clients, some of whom have already relocated from California over concerns about the proposal.

Opponents argue that even a one-time wealth tax would create long-term fiscal risks by encouraging billionaires to shift residency and investment elsewhere.Brian Brokaw, a longtime Newsom adviser leading a political committee against the measure, said the proposal was structurally flawed and would weaken California’s tax base.

“Enacting a so-called wealth tax in just one state wouldn’t target a small group it would impact all 40 million Californians,” Brokaw said. “This proposal trades a short-term revenue bump for long-term losses.”At least 25 billionaires listed in Forbes magazine’s 2025 ranking of the world’s 500 wealthiest people either lived in California or maintained major ties to the state, according to an Associated Press review.

Determining tax liability, however, could become legally complex because many own multiple residences across different states.The push for additional state healthcare funding comes after President Donald Trump signed a federal tax-and-spending package last year that is projected to cut more than $1 trillion nationwide over a decade from Medicaid and federal food assistance programs.