SACRAMENTO, Calif. (AP) 鈥� A in California to temporarily increase taxes on billionaires has enough signatures to qualify for the November ballot, a labor union backing the measure said Monday.
The proposal, backed by the Service Employees International Union Healthcare Workers West, would impose a one-time, 5% tax on individuals whose net worth exceeds $1 billion and who were living in the state as of Jan. 1, 2026. The goal is to generate $100 billion in revenue, which would largely be used to offset federal funding cuts to healthcare for low-income people.
鈥淐alifornia鈥檚 health is at stake,鈥� said Liz Perlman, executive director of a chapter of the American Federation of State, County and Municipal Employees, a major labor union. 鈥淗ospitals are closing and people will die. Why? So billionaires can get another tax cut that they don鈥檛 need.鈥�
The California Secretary of State still has to verify the signatures and officially place the measure on the ballot. Backers say they collected more than 1.5 million signatures, well over the roughly 875,000 they needed. California allows ballot initiative campaigns to pay people per signature they gather. The cost of gathering petition signatures can vary widely, but it typically runs around $15 for each signature.
If the measure goes before voters in November, it could prompt one of the costliest ballot fights ever and will draw national attention as a litmus test for voter attitudes on raising taxes on the rich. Vermont Sen. Bernie Sanders has campaigned in support of the idea. Meanwhile, Google founder Sergey Brin has already donated $57 million to a political committee called 鈥淏uilding a Better California鈥� that鈥檚 backing a variety of initiatives designed to blunt the billionaires鈥� tax. It鈥檚 raised over $90 million, counting Brin鈥檚 contributions, from fewer than a dozen donors.
Democratic Gov. Gavin 海角社区appom and Silicon Valley tech moguls are adamantly opposed. They warn it will drive California’s wealthiest residents out of the state. Nearly half of California’s personal income tax revenue . Some have already purchased properties out of state in case it passes.
鈥淎fter playing with matches since October, the SEIU has succeeded in lighting a 鈥楾ax the Rich鈥� wildfire by getting enough signatures,鈥� said David Lesperance, a tax consultant who’s advised some of his wealthy clients who left California because of the proposal. 鈥淭he many billionaire targets of their efforts have already responded by executing fire escape plans by relocating to other states.鈥�
Brian Brokaw, a longtime 海角社区appom adviser who is leading a political committee opposing the tax, said the measure was poorly constructed and would deal a huge blow to the state鈥檚 budget.
鈥淓nacting a so-called wealth tax in just one state wouldn鈥檛 target a small group — it would impact all 40 million Californians,鈥� he said in a statement. 鈥淭his proposal trades a short-term revenue bump for long-term losses.鈥�
At least 25 billionaires listed among Forbes magazine鈥檚 2025 rankings of the world鈥檚 500 wealthiest people either lived in California or had some significant ties to the state, based on a review by The Associated Press. But determining whether they were full-time residents or just frequent visitors could turn into a matter of dispute, since many of them own property elsewhere.
The President Donald Trump signed last year will nationwide over a decade from Medicaid and federal food assistance.
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Associated Press writer Michael R. Blood in Los Angeles contributed.
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