COMING UP. NOW BACK OVER TO YOU. ALL RIGHT DIRK. THANKS. WE’LL CHECK BACK. FIRST OF ALL WE’RE GOING TO TAKE A LIVE LOOK AT THE STATE CAPITOL RIGHT NOW WHERE SUPPORTERS OF THE CALIFORNIA BILLIONAIRE’S TAX SAY THAT THE PROPOSAL IS NOW A STEP CLOSER TO POSSIBLY GOING TO VOTERS THIS NOVEMBER. THAT PROPOSAL PLACES A ONE TIME, THEY SAY, 5% TAX ON BILLIONAIRES AND THEIR ASSETS TO FUND HEALTH CARE PROGRAMS. BUT A MAJOR BUSINESS GROUP IS WARNING THERE IS A HIDDEN PIECE OF THIS PROPOSAL THAT COULD EXPAND THE TAX TO MORE PEOPLE IN DIFFERENT WAYS. OUR KCRA THREE POLITICAL DIRECTOR, ASHLEY ZAVALA JOINS US WITH WHAT BOTH SIDES ARE SAYING. ASHLEY. YEAH. THIS IS A DISCUSSION THAT’S HAPPENING ONLINE RIGHT NOW ABOUT THIS PIECE OF THE PROPOSAL. THE CALIFORNIA BUSINESS ROUNDTABLE LOBBIES ON BEHALF OF THE STATE’S LARGEST BUSINESSES. THAT GROUP IS WARNING THAT BURIED IN THE BILLIONAIRE’S TAX IS A LINE THAT COULD ALLOW STATE LAWMAKERS TO IMPOSE THIS TAX BEYOND BILLIONAIRES WITHOUT VOTER APPROVAL. THE BILLIONAIRE’S TAX PROPOSAL IS 32 PAGES LONG AND TALKS ABOUT HOW THIS TAX WOULD WORK. NOW THE GROUP IS WORRIED SPECIFICALLY ABOUT A SECTION ON PAGE 26 THAT STATES, QUOTE, THE LEGISLATURE MAY AMEND THE 2026 BILLIONAIRE TAX BY STATUTE PASSED IN EACH HOUSE OF THE LEGISLATURE BY ROLL CALL. VOTE ENTERED INTO THE JOURNAL. TWO THIRDS OF THE MEMBERSHIP CONCURRING. IF THE STATUTE IS CONSISTENT WITH AND FURTHERS THE PURPOSE OF THE 2026 BILLIONAIRES TAX. BROOKE ARMOR, THE SPOKESPERSON FOR THE CALIFORNIA BUSINESS ROUNDTABLE, EXPLAINS THE GROUP’S CONCERN WITH THAT. IT’S A MASSIVE EXPANSION OF THE LEGISLATURE’S ABILITY TO TAX NOT JUST BILLIONAIRES, BUT THEY CAN CHOOSE TO CHANGE THE TAX THRESHOLD. THEY CAN CHOOSE TO PICK DIFFERENT PROPERTY THAT GETS TAXED. BUT WHAT IT REALLY DOES IS IT GIVES THE LEGISLATURE THE ABILITY AND THE POWER TO TAX ANYBODY’S SAVINGS ACCOUNT, RETIREMENT ACCOUNTS. IT PUTS ALL OF THAT POWER IN THE LEGISLATURE AFTER VOTERS, IF THEY PASS THIS. YOU KNOW, TECHNICALLY, THE LEGISLATURE CAN ALREADY IMPOSE NEW TAXES. BUT THE CONCERN HERE, I GUESS, IS THAT BECAUSE VOTERS APPROVE IT, THEY COULD POINT BACK TO THIS AND MAKE IT A BIT EASIER TO GO THROUGH THAT PROCESS. IS THAT HOW YOU’RE INTERPRETING IT? CERTAINLY. AND THEN THERE IT ALSO ALLOWS FOR CERTAIN PROPERTY THAT’S TAXED THAT’S, YOU KNOW, PROTECTED RIGHT NOW BY TAXPAYERS LIKE PROP 13 AND DIFFERENT PROPERTY. IT GIVES THE LEGISLATURE A WORKAROUND ON THINGS LIKE PROP 13, WHERE THE LEGISLATURE CAN NOW TAX PROPERTY UNDER THE WEALTH TAX PROVISIONS, AND THEY CAN EXPAND THAT, WHICH THEY CAN’T DO RIGHT NOW, BECAUSE THAT’S CONSTITUTIONALLY PROTECTED. BUT THIS THIS MEASURE WOULD BE A WORKAROUND ON THAT AS WELL, WHICH IS ALSO VERY CONCERNING. NOW, WE REACHED OUT TO THE HEALTH CARE UNION BACKING AND TRYING TO GET THIS ON THE BALLOT. THE SEIU UHW FOR COMMENT. ITS CHIEF OF STAFF, SUZANNE GIMENEZ, SAID, QUOTE, THE CALIFORNIA BUSINESS ROUNDTABLE IS LYING, PERIOD. AND THEY ARE ONCE AGAIN IGNORING THE FACT THAT FEDERAL HEALTH CARE CUTS FROM THE BIG BEAUTIFUL BILL ARE ALREADY CRUSHING THE BUSINESSES THEY ARE SUPPOSED TO REPRESENT. SHE GOES ON TO SAY A SECTION 503 ONE ZERO OF THE BILLIONAIRES TAX SAYS ANY AMENDMENTS CANNOT CHANGE THE FUNDAMENTAL PURPOSE OF THE ACT, WHICH IS TO IMPOSE A ONE TIME TAX ON BILLIONAIRES. OBVIOUSLY, THERE ARE TWO VERY DIFFERENT INTERPRETATIONS OF THIS LINE THAT’S IN THIS PROPOSAL. IT’S REALLY TO BE SEEN FIRST, IF THIS EVEN GETS ON THE BALLOT. WELL, THE GROUP SAYS IT TURNED IN ENOUGH SIGNATURES FOR IT TO QUALIFY FOR THE BALLOT YESTERDAY. WHERE IS THE UPDATE WITH THAT? YEAH, IT WILL TAKE SOME TIME BEFORE WE KNOW IF THAT’S FOR SURE. ACCORDING TO THE SECRETARY OF STATE’S WEBSITE, THE SIGNATURE VERIFICATION PROCESS HAS NOT YET STARTED ON THIS. SEIU. H W SAYS IT COLLECTED AND SUBMITTED ABOUT 1.5 MILLION SIGNATURES, WHICH IS MORE THAN ENOUGH TO GO TO VOTERS IN NOVEMBER. AGAIN, IF THOSE SIGNATURES ARE VERIFIED. BUT AGAIN, IT COULD BE MONTHS BEFORE THAT SIGNATURE COUNTING PROCESS IS FINALIZED AND
Major business group warns proposed billionaire tax in California could give more taxing power to lawmakers
Updated: 5:56 PM PDT Apr 28, 2026
A proposed California billionaire tax, which would impose a one-time 5% tax on billionaires and their assets to fund health care programs, is facing scrutiny from a major business group over concerns about legislative power. The California Business Roundtable, which lobbies on behalf of the state’s largest businesses, has raised concerns about a provision in the 32-page proposal. The group is flagging a section on page 26 that states, “The Legislature may amend the 2026 Billionaire Tax Act, by statute passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with and furthers the purposes of the 2026 Billionaire Tax Act.” Brooke Armour, a spokesperson for the California Business Roundtable, explained the group’s concerns. “It’s a massive expansion of the Legislature’s power to change the tax threshold, they can choose different property to tax,” Armour said. “What it does is give the Legislature the ability to tax anyone’s savings account, retirement accounts. It puts all of that power in the hands of the Legislature if voters pass this.”Armour also expressed concern about the Legislature’s ability to tax certain property under wealth tax provisions, which she said is currently prohibited under California law. In response, SEIU-UHW, the health care union backing the proposal, dismissed the claims. Suzanne Jimenez, the union’s chief of staff, said, “The California Business Roundtable is lying, period. And they are once again ignoring the fact that federal health care cuts from the ‘Big, Beautiful Bill’ are already crushing the businesses they are supposed to represent. As section 50310 of the Billionaire Tax Act says, any amendments cannot change the fundamental purpose of the act, which is to impose a one-time tax on billionaires.” The SEIU-UHW announced this week it had collected and submitted approximately 1.5 million signatures to qualify the measure for the November ballot. As of Tuesday, according to the California Secretary of State’s website, the signature verification process has not yet started. It could take months before the count is finalized and the measure officially qualifies for the November ballot.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
A proposed California billionaire tax, which would impose a one-time 5% tax on billionaires and their assets to fund health care programs, is facing scrutiny from a major business group over concerns about legislative power.
The California Business Roundtable, which lobbies on behalf of the state’s largest businesses, has raised concerns about a provision in the 32-page proposal.
The group is flagging a section on page 26 that states, “The Legislature may amend the 2026 Billionaire Tax Act, by statute passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with and furthers the purposes of the 2026 Billionaire Tax Act.”
Brooke Armour, a spokesperson for the California Business Roundtable, explained the group’s concerns.
“It’s a massive expansion of the Legislature’s power to change the tax threshold, they can choose different property to tax,” Armour said. “What it does is give the Legislature the ability to tax anyone’s savings account, retirement accounts. It puts all of that power in the hands of the Legislature if voters pass this.”
Armour also expressed concern about the Legislature’s ability to tax certain property under wealth tax provisions, which she said is currently prohibited under California law.
In response, SEIU-UHW, the health care union backing the proposal, dismissed the claims.
Suzanne Jimenez, the union’s chief of staff, said, “The California Business Roundtable is lying, period. And they are once again ignoring the fact that federal health care cuts from the ‘Big, Beautiful Bill’ are already crushing the businesses they are supposed to represent. As section 50310 of the Billionaire Tax Act says, any amendments cannot change the fundamental purpose of the act, which is to impose a one-time tax on billionaires.”
As of Tuesday, according to the California Secretary of State’s website, the signature verification process has not yet started.
It could take months before the count is finalized and the measure officially qualifies for the November ballot.
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