Billionaire tax proposal in California is on track to qualify for the ballot, backers say

Billionaire tax proposal in California is on track to qualify for the ballot, backers say

CALIFORNIA POLITICS. 360 I’M ASHLEY ZAVALA A PROPOSED TAX ON BILLIONAIRES LIVING IN CALIFORNIA IS GAINING NATIONAL ATTENTION. SENATOR BERNIE SANDERS TRAVELED TO LOS ANGELES AND THE BAY AREA THIS WEEK TO RAMP UP SUPPORT FOR THE PROPOSED ONE TIME, 5% TAX ON BILLIONAIRES TO HELP FUND HEALTH CARE IN THE STATE. RIGHT NOW, ORGANIZERS ARE STILL COLLECTING SIGNATURES, BUT IT HAS SOME OF THE STATE’S RICHEST RESIDENTS ALREADY LEAVING. CALIFORNIA GOVERNOR GAVIN NEWSOM HAS REPEATEDLY BLASTED THE PROPOSAL, SAYING IT WILL BACKFIRE ON STATE DOLLARS AND THE ABILITY TO PROVIDE KEY STATE SERVICES WHEN IT COMES TO PUBLIC SAFETY AND SCHOOLS. I SAT DOWN WITH SUZANNE JIMENEZ, WHO FILED THE BALLOT INITIATIVE. HERE’S PART OF OUR CONVERSATION. SUZANNE, WELCOME BACK TO THE SHOW. THANK YOU FOR HAVING ME AGAIN. SO WHAT’S THE STATUS OF THE INITIATIVE? DO YOU HAVE AN IDEA OF HOW MANY SIGNATURES YOU’VE COLLECTED SO FAR? YEAH, SO WE ARE OUT THERE COLLECTING SIGNATURES. IT’S ACTUALLY GOING REALLY GREAT GIVEN, YOU KNOW, ALL THE INITIATIVES THAT ARE OUT THERE. WE’RE IN A GOOD PLACE AND WE’LL BE ANNOUNCING OUR 25% COLLECTION SOON. HOW MUCH OF A BOOST DO YOU EXPECT WITH BERNIE SANDERS VISITING THE STATE THIS WEEK TO SUPPORT THAT MEASURE? HOW? I MEAN, HOW MUCH DO YOU THINK THAT HELPED? I MEAN, I THINK THAT HAS REALLY PUT THIS INITIATIVE OUT KIND OF IN THE PUBLIC SPHERE IN CALIFORNIA. BERNIE, AS SENATOR SANDERS, I SHOULD SAY, NOT SO INFORMALLY. HE YOU KNOW, WE KNOW THAT HE’S ONE OF THE MOST POPULAR POLITICAL FIGURES IN CALIFORNIA, MUCH LESS THE COUNTRY. AND SO WE THINK HAVING HIM AT OUR KICKOFF EVENT EARLIER THIS WEEK IS REALLY GOING TO BOOST. AND, YOU KNOW, WE’VE ALREADY SEEN THAT IN TERMS OF RESPONSE TO OUR WEBSITE, FOLKS INTERESTED IN VOLUNTEERING IN THE CAMPAIGN. WE’RE ACTUALLY TRAINING MORE VOLUNTEERS TO COLLECT SIGNATURES. SO IT REALLY HAS BEEN JUST IN THE LAST 48 HOURS, A REAL BOOST FOR THE CAMPAIGN. ON THE OTHER SIDE OF THIS, WHAT DO YOU MAKE OF ALL THE POLITICAL ACTION COMMITTEES THAT ARE FORMING AND ALSO THE POSSIBILITY OF A COUNTERMEASURE LANDING ON THE BALLOT TO TRY TO FIGHT WHAT YOU’RE PROPOSING HERE? YOU KNOW, HONESTLY, IT’S UNSURPRISING WE YOU KNOW, WHEN WE DECIDED WHEN OUR WITH THE HEALTH CARE WORKERS OF SEIU DECIDED TO TAKE ON THIS MEASURE, WE KNEW WHAT WE WERE TRYING TO DO WAS NOT SOMETHING THAT WAS EASY. WE KNEW THAT WE WERE ESSENTIALLY GOING UP AGAINST THE MOST WEALTHIEST PEOPLE IN THE WORLD, BUT WE ALSO, YOU KNOW, WE STOOD KIND OF IN IT BECAUSE WE KNEW WHY WE WERE DOING THIS. THIS IS ABOUT STOPPING A HEALTH CARE COLLAPSE IN OUR STATE. AND SO IT’S NOT SURPRISING, YOU KNOW, INSTEAD OF ACTUALLY TRYING TO FIGURE OUT HOW DO WE STOP THE HEALTH CARE CRISIS THAT’S LOOMING BEFORE US, WE SEE BILLIONAIRES, YOU KNOW, SPENDING ALL THEIR MONEY TRYING TO STOP A VERY, VERY, YOU KNOW, SMALL TAX THAT, YOU KNOW, IS GOING TO SHOW THEM TO STILL BE ULTRAWEALTHY AFTER THEY PAID A 5% TAX. AND SO NOT SURPRISING, UNFORTUNATE, BECAUSE WE HAVE A REAL PROBLEM ON OUR HANDS IN CALIFORNIA THAT NO ONE ELSE IS TALKING ABOUT, WHICH IS THE COLLAPSE OF OUR HEALTH CARE SYSTEM. JIMENEZ AND I ALSO TALK ABOUT GOVERNOR GAVIN NEWSOM’S LATEST WARNING AROUND THE PROPOSAL AND THE POSSIBILITY THAT THE TRUMP ADMINISTRATION OR LAWMAKERS IN WASHINGTON INTERVENE. OUR FULL INTERVIEW IS ON CAL POLITICS THREE 60.COM. WELL, EVEN THOUGH IT’S NOT YET ON CALIFORNIA’S BALLOT, LAWMAKERS IN WASHINGTON, D.C., ARE WORKING TO BLOCK AT LEAST PART OF THE BILLIONAIRE’S TAX. REPUBLICAN REPRESENTATIVE KEVIN KILEY IS PROPOSING A FEDERAL LAW THAT WOULD SHIELD BILLIONAIRES WHO LEAVE CALIFORNIA BEFORE THE TAX WERE TO TAKE EFFECT. IT SPECIFICALLY STOPS ANY STATE FROM HAVING A RETROACTIVE TAX ON THE ASSETS OF SOMEONE WHO DOESN’T LIVE HERE ANYMORE. HERE’S PART OF OUR CONVERSATION. JOINING US NOW IS CONGRESSMAN KEVIN KILEY. REPRESENTATIVE KILEY, THANK YOU SO MUCH FOR MAKING TIME. YOU BET. THANKS FOR HAVING ME. SO I WANT TO START WITH THIS PROPOSAL THAT YOU FILED THIS WEEK. THAT APPEARS TO BE IN RESPONSE TO THE BILLIONAIRES TAX FROM SEIU, UFW THAT PROHIBITS STATES FROM TRYING TO CLAW ANY ASSETS WITH TAXES FOR PEOPLE WHO NO LONGER RESIDE. WHAT ULTIMATELY PROMPTED YOU TO FILE THIS? WELL, YES, IT WAS DEFINITELY THIS SO-CALLED WEALTH TAX OR BILLIONAIRES TAX THAT’S BEING PROPOSED IN CALIFORNIA. BUT THAT REALLY ISN’T QUITE AN ACCURATE DESCRIPTION OF IT. IT’S NOT JUST A TAX, IT’S AN ACTUAL SEIZURE OR CONFISCATION OF ASSETS. AND SO YOU’RE GOING TO SEE PEOPLE HAVE 5% OF THEIR NET WORTH SIMPLY TAKEN BY THE GOVERNMENT. A LOT OF PEOPLE DON’T HAVE, YOU KNOW, THAT KIND OF CASH SITTING AROUND. SO THEY HAVE TO UNWIND THEIR COMPANIES. AND SO PREDICTABLY, WHAT YOU’RE SEEING IS THESE INDIVIDUALS WHO ARE HUGE JOB CREATORS, WHO PAY A LOT OF TAXES IN CALIFORNIA, AS IT IS, ARE NOW LEAVING THE STATE, ARE TAKING THEIR INVESTMENTS WITH THEM OR TAKING JOBS WITH THEM, AND ARE TAKING THE TAX DOLLARS THAT THEY PAY THROUGH INCOME TAXES WITH THEM. AND SO THIS WHOLE THING IS GOING TO BE A TOTAL DISASTER FOR CALIFORNIA IF IT PASSES. DO YOU THINK WITH THE TRUMP ADMINISTRATION, WASHINGTON’S FRIENDLY RELATIONSHIP ISH WITH TECH, DO YOU SEE CONGRESS OR THE PRESIDENT INTERVENING HERE OR DOING SOMETHING THAT EITHER BLOCKS THIS FROM THE BALLOT OR TRIES TO TAKE ACTION IF IT DOES GET ON THERE? YEAH, I THINK WE SHOULD BE ABLE TO GET BROAD BIPARTISAN SUPPORT FOR THIS. I MEAN, LOOK AT CALIFORNIA. EVEN GOVERNOR NEWSOM AGREES WITH ME ON THIS. I DON’T AGREE WITH GOVERNOR ON A LOT. BUT, YOU KNOW, I THINK MOST PEOPLE WHO ARE LOOKING AT THIS RATIONALLY CAN SEE THAT THIS WILL HAVE THE OPPOSITE OF THE INTENDED EFFECT. IF THE IDEA IS THAT YOU’RE JUST GOING TO CONFISCATE PEOPLE’S ASSETS AND THEREBY INCREASE PUBLIC REVENUES. THE PROBLEM WITH THAT IS IF PEOPLE AREN’T IN CALIFORNIA ANYMORE, THEY’RE NOT PAYING INCOME TAXES. AND BY THE WAY, IN CALIFORNIA IN SOME YEARS, YOU KNOW, WE HAVE UPWARDS OF 50% OF OUR STATE INCOME TAX REVENUE COMES FROM THE TOP 1% OF EARNERS. SO IF YOU START TO LOSE EVEN SOME OF THOSE PEOPLE, THEN, YOU KNOW, IT COULD CAUSE THIS WHOLE HOUSE OF CARDS TO COME TUMBLING DOWN. SO, YOU KNOW, THIS IS A THREAT TO THE QUALITY OF LIFE WE HAVE IN CALIFORNIA IN ANY NUMBER OF WAYS. AND SO WE NEED TO USE EVERY TOOL AT OUR DISPOSAL TO MAKE SURE THAT IT DOESN’T HAPPEN. YOU MENTIONED YOU AND THE GOVERNOR AGREE ON THIS, BUT THE GOVERNOR HAS SAID THAT HE DOESN’T THINK THIS IS SOMETHING THAT SHOULD BE SORTED OUT AT THE STATE LEVEL, BUT SOMETHING MAYBE NATIONALLY. WHAT’S YOUR RESPONSE TO THAT? WELL, THAT’S WHAT I’M TRYING TO DO. AND SO I LOOK FORWARD TO HIM, YOU KNOW, ENDORSING MY LEGISLATION AND ENCOURAGING FOLKS IN CONGRESS TO SUPPORT IT. AND SPECIFICALLY, WHAT MY BILL DOES IS IT APPLIES TO THIS RETROACTIVE RETROACTIVE PROVISION. SO WHAT’S PARTICULARLY BAD ABOUT THIS WEALTH TAX PROPOSAL IS IT SAYS THAT EVEN IF YOU HAVE LEFT CALIFORNIA OVER THE LAST YEAR, WE’RE STILL GOING TO TRY TO TAX YOU. AND SO THAT’S WHY YOU SEE PEOPLE HAVE ALREADY LEFT, YOU KNOW, THE LIKES OF THE FOUNDERS OF GOOGLE OR MARK ZUCKERBERG OR LARRY ELLISON OR PETER THIEL, WHO ARE SAYING WE CAN’T EVEN, YOU KNOW, TOLERATE THE RISK THAT THIS THING IS GOING TO PASS, BECAUSE IF IT DOES, IT WILL BE TOO LATE FOR US. AND SO AT LEAST BY SAYING THIS DOESN’T APPLY RETROACTIVELY, IT RESTORES SOME BASIC FAIRNESS, AND IT ASSURES THAT PEOPLE DON’T HAVE TO LEAVE EVEN IN ADVANCE OF IT PASSING. BUT THE GOVERNOR HAS SAID A WEALTH TAX SHOULDN’T BE SORTED OUT AT THE STATE LEVEL, BUT MAYBE AT THE NATIONAL LEVEL. IS SHOULD SHOULD LAWMAKERS IN WASHINGTON, D.C. RESPOND TO MAYBE THE INEQUITY ISSUES THAT SOME IN THE DEMOCRATIC PARTY, LIKE THE SEIU, UFW, FOR EXAMPLE, IS POINTING TO AS A REASON TO TRY TO IMPLEMENT THIS TAX? WELL, NO, ABSOLUTELY NOT. IF THAT’S WHAT HE MEANS BY A NATIONAL SOLUTION, YOU CAN LOOK AT OTHER COUNTRIES THAT HAVE TRIED DOING THIS SORT OF WEALTH TAX, WHICH IS TOTALLY FOREIGN TO ANYTHING WE’VE EVER HAD IN THE UNITED STATES. AND THEY ALL HAVE ACTUALLY REPEALED IT BECAUSE IT JUST DOESN’T WORK. IT ACTUALLY HAS THE OPPOSITE OF THE INTENDED EFFECT. AND SO, YOU KNOW, IT WOULD BE PARTICULARLY BAD IF WE ONLY HAD IT IN CALIFORNIA. AND THEN PEOPLE ARE LEAVING FOR OTHER STATES. BUT IF WE HAD IT AT THE NATIONAL LEVEL, IT WOULD BE A TERRIBLE THING FOR INNOVATION AND FOR OUR ECONOMY AS WELL. I ALSO ASKED CONGRESSMAN KILEY ABOUT HIS REELECTION CAMPAIGN, THIS AFTER HIS CURRENT DISTRICT WAS SPLIT INTO MULTIPLE DISTRICT

Billionaire tax proposal in California is on track to qualify for the ballot, backers say

Updated: 4:22 PM PDT Apr 27, 2026

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A controversial proposal 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.(Video above: National lawmakers get involved in California billionaire tax fight | California Politics 360.)“California’s health is at stake,” said Liz Perlman, executive director of a chapter of the American Federation of State, County and Municipal Employees, a major labor union. “Hospitals are closing and people will die. Why? So billionaires can get another tax cut that they don’t need.”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. An effort to oppose the tax has already raised millions and led to proposals designed to nullify the tax. Meanwhile, Vermont Sen. Bernie Sanders has campaigned in support of the idea.Democratic Gov. Gavin Newsom 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 comes from the top 1% of earners. Some have already purchased properties out of state in case it passes.“After playing with matches since October the SEIU has succeeded in lighting a ‘Tax the Rich’ wildfire by getting enough signatures,” said David Lesperance, a tax consultant who’s advised some of his wealthy clients who left California because of the proposal. “The many billionaire targets of their efforts have already responded by executing fire escape plans by relocating to other states.”Brian Brokaw, a longtime Newsom 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’s budget.“Enacting a so-called wealth tax in just one state wouldn’t target a small group — it would impact all 40 million Californians,” he said in a statement. “This proposal trades a short-term revenue bump for long-term losses.”At least 25 billionaires listed among Forbes magazine’s 2025 rankings of the world’s 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 big tax and spending cuts law President Donald Trump signed last year will cut more than $1 trillion nationwide over a decade from Medicaid and federal food assistance.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel ——Associated Press writer Michael R. Blood in Los Angeles contributed.

A controversial proposal 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.

(Video above: National lawmakers get involved in California billionaire tax fight | California Politics 360.)

“California’s health is at stake,” said Liz Perlman, executive director of a chapter of the American Federation of State, County and Municipal Employees, a major labor union. “Hospitals are closing and people will die. Why? So billionaires can get another tax cut that they don’t need.”

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. An effort to oppose the tax has already raised millions and led to proposals designed to nullify the tax. Meanwhile, Vermont Sen. Bernie Sanders has campaigned in support of the idea.

Democratic Gov. Gavin Newsom 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 comes from the top 1% of earners. Some have already purchased properties out of state in case it passes.

“After playing with matches since October the SEIU has succeeded in lighting a ‘Tax the Rich’ wildfire by getting enough signatures,” said David Lesperance, a tax consultant who’s advised some of his wealthy clients who left California because of the proposal. “The many billionaire targets of their efforts have already responded by executing fire escape plans by relocating to other states.”

Brian Brokaw, a longtime Newsom 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’s budget.

“Enacting a so-called wealth tax in just one state wouldn’t target a small group — it would impact all 40 million Californians,” he said in a statement. “This proposal trades a short-term revenue bump for long-term losses.”

At least 25 billionaires listed among Forbes magazine’s 2025 rankings of the world’s 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 big tax and spending cuts law President Donald Trump signed last year will cut more than $1 trillion nationwide over a decade from Medicaid and federal food assistance.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

——

Associated Press writer Michael R. Blood in Los Angeles contributed.