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Newsom Leads Opposition as Union-Backed California Billionaire Tax Drive Intensifies

Newsom opposes the union-backed plan, citing warnings that it could erode the tax base.

Overview

  • SEIU–UHW is gathering signatures for a 2026 ballot initiative to levy a one-time 5% tax on Californians with at least $1 billion in assets, covering stocks, businesses, art, collectibles and intellectual property.
  • The measure would apply based on California residency as of Jan. 1, 2026, with proceeds reserved primarily for health programs and a smaller share for education and food assistance.
  • Qualification for the ballot remains uncertain, with more than 870,000 valid signatures required and expectations of legal challenges even if voters approve it.
  • Gov. Gavin Newsom and business groups are organizing to defeat the proposal, while progressive figures including Bernie Sanders and Rep. Ro Khanna have endorsed it.
  • The Legislative Analyst’s Office projects a temporary revenue boost but a likely ongoing decline in income-tax receipts, as some tech leaders weigh relocating and reports indicate Google co-founders Larry Page and Sergey Brin have moved more assets to Florida.