(The Center Square) – The union backing a proposed tax on California’s billionaires is gearing up to start gathering signatures in January to put the initiative on the ballot, a representative told The Center Square on Monday.
“Even before we launched this initiative, we knew that having the wealthiest in our society step up to pay their fair share, to help the rest of the folks in California, we had a feeling it was going to be popular,” said Renée Saldaña, a spokesperson for Service Employees International Union-United Healthcare Workers West. “These frontline health care workers have been chomping at the bit to get out there and start gathering signatures.”
The proposed tax, which would be collected in 2027, is a one-time 5% state income tax on all Californians whose wealth exceeds $1 billion, according to documents sent to state Attorney General Rob Bonta’s office in November. All types of personal property and wealth, including capital stock, bonds, artwork, collectibles and investments would be subject to the billionaire tax, according to previous reporting by The Center Square.
If the Legislature approves the initiative, the tax would be on the Nov. 3, 2026 ballot, Saldaña told The Center Square.
The tax would exclude real property and some pensions and retirement accounts, according to a title and summary of the measure published online on Dec. 26.
That title and summary shows that 90% of the money generated from the tax would go toward paying for health care, while 10% would go to food assistance or education programs. The tax is expected to generate tens of billions of dollars that would be spread out over several years, the title shows.
Expected cuts to the state’s federally-funded Medicaid, known as Medi-Cal in California, will push roughly 3.4 million Californians off the public health insurance program, according to media reports. That follows a $1 trillion cut to Medicaid over the next 10 years nationwide, according to CalMatters. Proponents expect the billionaire tax to help offset those cuts.
According to the Legislative Analyst’s Office, the proposed tax on billionaires, if it passed, would be due in 2027. Taxpayers would have the option of spreading the payment of that tax out over a number of years.
“This is a tax on a relatively small amount of people in California,” Saldaña told The Center Square. “If they would just step up for the other 39 million people in this state who depend on our health care system, our education system and food assistance, it can really prevent a health care collapse.”
A dozen Republican and Democratic legislators who sit on budget, tax and revenue committees were not available on Monday or did not respond to The Center Square.
The California Department of Finance declined to comment on Monday, and the state Treasurer’s Office did not respond to The Center Square.
