Backers of a proposed tax on California billionaires have gathered more than enough signatures to place the measure on the November ballot, intensifying a clash between labor unions and the state's wealthiest residents. The labor coalition behind the initiative announced at a press conference on Friday that over 1.5 million Californians signed the petition supporting a one-time 5% tax on assets exceeding $1.1 billion. To qualify for the ballot, at least 875,000 valid signatures are required.
Signature Submission and Verification
The coalition plans to submit the signatures to state officials on Friday to begin the verification process. Mayra Castañeda, a member of SEIU-United Healthcare Workers West, the union leading the campaign, stated that approval of the tax would help offset healthcare funding cuts resulting from last year's Republican tax bill. "California is home to more billionaires than anywhere in the country," Castañeda said. "Ultra-wealthy billionaires have seen their fortunes skyrocket, even as food, rent and gas prices increase, crushing working families who are struggling to stay afloat." She added that the signature filing brings them "one step closer to the ballot."
Opposition from Tech Executives and Governor
The proposal has faced strong opposition from some of the state's wealthiest tech executives, including Google co-founder Sergey Brin, whose net worth is estimated at $273 billion. Brin moved several of his business entities to Nevada late last year, apparently to limit his exposure to the tax. If approved by voters, the tax would apply to billionaires who resided in California as of January 1, 2026.
Although the measure has support from prominent left-leaning politicians like Vermont Senator Bernie Sanders (I), it lacks backing from California Governor Gavin Newsom. The Democrat, a potential 2028 presidential candidate, has opposed the measure, arguing it would drive wealthy residents out of the state and weaken California's tax base. "This will be defeated — there's no question in my mind," Newsom recently told The New York Times. "I'll do what I have to do to protect the state."
Public Opinion and Projected Revenue
A poll conducted last month found that 50% of voters support the measure, while 28% oppose it. However, 54% expressed concern about wealthy residents like Brin leaving the state. Opponents of the measure are expected to spend heavily on counter-messaging in the coming months.
The campaign behind the tax projects it would raise approximately $100 billion over five years, with 90% of the funds allocated to healthcare and the remainder to education and food assistance. Those subject to the tax could pay the full amount upfront or in annual installments over five years.
According to the Institute on Taxation and Economic Policy, a left-leaning think tank, Forbes' billionaire list includes over 200 people in California with a combined wealth exceeding $2 trillion. The group estimates an "avoidance rate" of just 10%, given the small number of billionaires, which allows for careful auditing of each taxpayer.
