SAN JOSE MAYOR MATT MAHAN has come out against a controversial proposal to create a \u201cbillionaire tax\u201d in California. Backers see it as a means of filling a massive deficit facing the state\u2019s health care\u00a0system.<\/p>\n
In\u00a0a nearly 300-word thread posted to X<\/a>\u00a0Monday, Mahan warned if passed by voters, the pending statewide ballot measure would drive wealthy entrepreneurs out of California, sapping the state\u2019s tax base and undermining its economic dynamism.<\/p>\n \u201cWe need a rising economic tide to lift all boats, not a political plan that will sink California\u2019s innovation economy,\u201d Mahan wrote.<\/p>\n The post is\u00a0just the latest example<\/a>\u00a0of\u00a0Mahan chiming in<\/a>\u00a0on a\u00a0hot-button statewide policy issue<\/a>, amid speculation that he is\u00a0considering a run for governor this November<\/a>. The mayor\u2019s office has consistently\u00a0downplayed such rumors<\/a>.<\/p>\n The proposed measure would impose a one-time, 5% wealth tax on about 200 Californians who hold more than $1 billion in assets, backers said.<\/p>\n \u201cWe need a rising economic tide to lift all boats, not a political plan that will sink California\u2019s innovation economy.\u201d<\/p>\n Mayor Matt Mahan<\/p>\n The October announcement of the ballot measure campaign has set off a political firestorm\u00a0that has only intensified with time<\/a>. In recent weeks, a number of wealthy Californians have responded with threats to move their homes and assets to other states. Meanwhile, prominent California Democrats have staked out opposing positions on both sides of the issue.<\/p>\n While Gov. Gavin Newsom has come out firmly against the tax, South Bay Congressman Ro Khanna has become one of its most vocal supporters.<\/p>\n \u201cWe believe billionaires can pay a modest wealth tax so working class Californians have the Medicaid your party cut,\u201d Khanna wrote in an X post\u00a0responding to criticism from Republican Sen. Ted Cruz of Texas<\/a>.<\/p>\n Khanna is referencing pending cuts that stem from President Donald Trump\u2019s One Big Beautiful Bill. In California, the state stands to lose $30 billion each year from the measure, resulting in 3.4 million people losing Medi-Cal coverage, according to\u00a0estimates from The California Budget & Policy Center<\/a>. The campaign behind the wealth tax \u2014 led by\u00a0Service Employees International Union-United Healthcare Workers West<\/a>\u00a0(SEIU-UHW), a major statewide health care union \u2014 said the $100 billion in projected revenue from the measure would provide\u00a0a crucial buffer against those looming cuts<\/a>.<\/p>\n Supporters must collect nearly 850,000 signatures by June 24 for the wealth tax to qualify for the November ballot.<\/p>\n Khanna\u2019s outspoken support for the billionaire tax has earned him fierce rebukes from a number of tech industry leaders, a constituency the Silicon Valley representative has generally counted among his reliable supporters. Mahan\u2019s series of X posts does not refer to Khanna.<\/p>\n Khanna\u2019s office did not respond to a request for comment. A representative for Mahan declined to provide further comment beyond the mayor\u2019s X posts.<\/p>\n Mahan\u2019s posts\u00a0warned an exodus of wealthy entrepreneurs would devastate California\u2019s tax base \u2014 which is heavily reliant on high-income earners \u2014 leaving middle-class working households to \u201cpick up the tab.\u201d<\/p>\n My mom always told my sisters and me, \u201cdon\u2019t cut off your nose to spite your face.\u201d\u00a0<\/p>\n And as I think about the ramifications of the so-called Billionaire Tax, I can\u2019t help but hear her voice. We need a rising economic tide to lift all boats, not a political plan that will sink\u2026<\/p>\n \u2014 Mayor Matt Mahan (@MattMahanSJ) January 5, 2026<\/a><\/p>\n<\/p>\n \u201cI realize no one has sympathy for billionaires. But the truth is \u2014 they don\u2019t have to, and many won\u2019t, stay here if this tax is implemented,\u201d Mahan wrote. \u201cThe people who lose in the long run are California families who will be asked to foot more of the bill for government services and infrastructure.\u201d<\/p>\n Responding to Mahan\u2019s comments, a spokesperson for SEIU-UHW accused the mayor of misunderstanding the underlying funding problem the proposed tax is intended to solve.<\/p>\n \u201cHe must be misinformed \u2014 because the goal of this measure is to save hospitals and keep ERs open, prevent higher health care costs, and protect health care for all Californians, including children, seniors and people with disabilities,\u201d Suzanne Jimenez, the labor organization\u2019s chief of staff, told San Jos\u00e9 Spotlight. \u201cWithout this measure, higher health care costs will be shifted onto millions of Californians, many of whom are already struggling with skyrocketing health care and prescription costs.\u201d<\/p>\n In his posts, Mahan\u00a0\u2014 who recently launched a statewide Back to Basics initiative focused on promoting \u201ccommon sense\u201d policy fixes to the state\u2019s problems \u2014 also questioned the efficacy of imposing a new tax. He argued that before taking this step, California should first do more to crack down on \u201cwaste, fraud and abuse\u201d in the health care system and state government.<\/p>\n \u201cIncome inequality is a very real issue and we need to address it with real solutions \u2014 like closing the massive loopholes nationally that allow the wealthiest among us to essentially never pay taxes on many capital gains,\u201d he said. \u201cBut for California to go it alone will be a disaster.\u201d<\/p>\n Contact Keith Menconi at\u00a0keith@sanjosespotlight.com\u00a0or @KeithMenconi on X.<\/p>\n This story originally appeared in San Jos\u00e9 Spotlight.<\/a><\/p>\n \t