Advocates for a proposed tax on California's wealthiest residents announced Sunday they have gathered enough signatures to put the measure before voters in November. The Billionaire Tax Act, which would impose a one-time 5% levy on the net worth of the state's roughly 200 billionaires, is designed to generate revenue for healthcare programs serving middle- and low-income Californians.
According to the Los Angeles Times, supporters say they have submitted 1.6 million signatures—far exceeding the 874,641 required by state law. County elections officials must now verify the signatures and forward them to California's secretary of state by June 24 to secure a spot on the ballot.
Suzanne Jimenez, chief of staff for the Service Employees International Union-United Healthcare Workers West, a key backer, told the LA Times: "Most Californians and most billionaires recognize how reasonable and necessary this proposal is—both to keep emergency rooms open and to save California businesses from closing."
The measure has drawn sharp opposition from Governor Gavin Newsom, a Democrat, who has warned it could drive wealthy residents out of the state. "This will be defeated—there's no question in my mind," Newsom said earlier this year in an interview with the New York Times. "I'll do what I have to do to protect the state."
Congresswoman Maxine Waters, a California Democrat, initially expressed confusion over Newsom's stance. "I don't know what he's thinking, whether he's thinking, 'Well, a one-time tax is too much.' Is he thinking 5 percent or whatever is too much?" she said during a January appearance on NewsNation.
Rob Lapsley, president of the bipartisan California Business Roundtable, argued the tax does not address the state's underlying fiscal problems. "This doesn't fix the $35-billion-plus budget deficit and does nothing to address the decade of overspending that led to the structural deficit," he told the LA Times.
A March poll of registered voters found 50% support for the Billionaire Tax Act, with 28% opposed. The proposal is part of a broader push on the West Coast to tax the wealthy, following Washington state's approval of its first-ever income tax on residents earning over $1 million annually.
The debate comes amid a crowded California gubernatorial race, where candidates have sparred over fiscal policy and the state's housing crisis. Recent debates have highlighted the housing crisis and GOP rivalry, while Betty Yee's exit from the race has narrowed the field. The billionaire tax could become a key issue in the campaign, testing voters' appetite for taxing extreme wealth to fund public services.
