Summary
A new proposal in California aims to introduce a one-time 5% tax on billionaires to raise $100 billion for health care and education. This comes after President Trump signed a law significantly cutting federal Medicaid and food aid funding. The funds from the proposed tax would help cover the shortfall and maintain health coverage for low-income residents.
Key Facts
- The tax targets the wealth of California's billionaires and could generate approximately $100 billion.
- The effort is led by the Service Employees International Union (SEIU) to address federal funding cuts.
- President Trump signed a law that reduces federal Medicaid and food assistance spending by over $1 trillion over 10 years.
- California might lose $30 billion annually in Medicaid funding, potentially affecting up to 3.4 million residents.
- The proposed tax revenue would primarily maintain Medi-Cal coverage and support public education.
- The initiative needs over 870,000 signatures to appear on the ballot by November 2026.
- A small portion of the funds would aid K-12 education amid threats of reduced federal grants.
- Governor Gavin Newsom has historically opposed wealth-targeted tax increases and highlighted potential federal funding cuts' impact.
