Overview
- The union-backed proposal would impose a one-time 5% levy on Californians with net worth above $1 billion as of Jan. 1, 2026, with most revenue earmarked for health care and some for education and food assistance.
- Backers are still collecting roughly 870,000–875,000 valid signatures by June 24 to qualify the measure for the November 2026 ballot, and the tax would apply retroactively to residents on the 2026 cutoff date.
- A Mellman Group survey found initial support at 48% to 38% with 14% undecided, slipping to 46% support and 44% opposition after respondents heard pro and con arguments, with concerns about economic effects, legal delays and tax avoidance.
- Gov. Gavin Newsom and several prominent Democrats have come out against the plan, opposition funding is ramping up, and billionaire lawyers have signaled constitutional challenges if the measure advances.
- New analyses highlight design and valuation problems, including Tax Foundation findings that rules for supervoting shares and private assets could produce liabilities far above 5%, even as some tech leaders like NVIDIA’s Jensen Huang say they will remain in California.