Chances of California Billionaire's Tax Plummet as Deadline Looms
Summary
A proposal to tax billionaires in California is unlikely to make it onto the 2026 ballot due to growing political opposition and legal challenges. Governor Gavin Newsom and other groups are pressuring the health care workers' union that filed the initiative to withdraw it before the June 25 deadline.Key Facts
- The Billionaire Tax Act would impose a one-time 5% tax on individuals with more than $1 billion in wealth.
- The tax could raise tens of billions for public programs like health care, education, and food assistance.
- The health care workers' union SEIU-UHW filed the proposal and submitted over 1.5 million signatures for qualification.
- At least 874,641 signatures must be verified by June 25 for the initiative to qualify for the ballot.
- Governor Newsom and his allies oppose the tax, saying it could push billionaires to leave California.
- Several labor unions and business groups have broken with SEIU-UHW and oppose the tax.
- Wealthy individuals like Peter Thiel and Eric Schmidt have donated millions to fight the tax.
- The debate is causing divisions within California’s Democratic Party, between progressives and moderates.
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