WASHINGTON (TNND) — As several Democratic-led states continue pushing ‘tax the rich’ proposals, one state is leaving the decision up to the voters. California residents could decide if a new ‘Billionaires Tax’ gets the green light. Sponsored by healthcare unions like the SEIU-UHW, they argue the tax would save California’s healthcare system from collapsing. Pointing the finger at President Donald Trump’s “One Big Beautiful Bill.”

The federal funding cuts will strip roughly $100 billion from California healthcare over the next five years,” SEIU wrote on its website.

But opponents, including some billionaires, disagree. Google co-founder Sergey Brin told The New York Times in part, “I fled socialism with my family in 1979 and know the devastating, oppressive society it created in the Soviet Union. I don’t want California to end up in the same place,” Brin said. Another critic is Democratic California Governor Gavin Newsom. He argued the tax could drive wealthy residents out of the state, reducing long-term revenue.

The challenge with this particular tax is it doesn’t include firefighters and teachers; they’re left out of the tax. It’s one time and we’ve already seen dozens and dozens of people leave the state,” Newsom said while appearing on Real Time with Bill Maher in early May.

Here’s how the tax would work. California residents with a net worth of at least $1 billion would pay a one-time 5% tax. Installments are an option and California residency as of January 1st, 2026, is a must. Estimates show the tax would impact roughly 255 eligible taxpayers. But the state is already seeing some billionaires pack up and go.

Aside from Brin, that list includes Google’s Larry Page and Meta’s Mark Zuckerberg. Meanwhile, Nvidia CEO Jensen Huang publicly stated he’s fine with the proposed tax, despite a reported net worth of over $150 billion.

We chose to live in Silicon Valley, and whatever taxes I guess they would like to apply, so be it,” Huang told Bloomberg earlier in 2026.

Another supporter, Sen. Bernie Sanders, I-Vt., who has held rallies in Los Angeles to boost support.

The need for our country to finally confront the grotesque level of income and wealth inequality that we are currently experiencing,” Sanders said in February.

The tax proposal comes at a time when California is losing income and residents. IRS data shows that from 2022-2023, the state lost $11.9 billion, and from 2024-2025, just under 230,000 residents. California also has the highest income tax, reaching 13.3%. Meanwhile, in New York, another area proposing ‘tax the rich policies,’ a new poll found 67% believe the state is heading in the wrong direction. That includes 57% when it comes to housing and 47% accessing quality healthcare.

The tax is also being considered as the race to become California’s next governor heats up. According to Real Clear Politics, Republican Steve Hilton, whose earned President Trump’s endorsement, holds a 2.5-point lead over billionaire Democrat Tom Steyer. If placed on November’s ballot, the measure would need a simple majority to pass.