California billionaire tax heads to November vote

A proposal to levy a one-time 5% tax on the net worth of California residents worth more than $1 billion has officially been placed on the Nov. 3, 2026 statewide ballot. The initiative advanced after its backers declined to withdraw it before a state deadline, confirming that voters will decide the issue in November.

The measure is sponsored by the Service Employees International Union–United Healthcare Workers West (SEIU-UHW). It targets individuals whose net worth exceeds $1 billion and would apply retroactively to those who were California residents as of Jan. 1, 2026.

Supporters say the tax would be imposed only once on accumulated wealth, rather than as an ongoing annual levy. The proposal focuses specifically on very high net-worth individuals, leaving other tax structures in the state unchanged.

Backers of the initiative estimate that the one-time tax could raise about $100 billion in revenue. They state that the lion’s share of these funds would be directed to healthcare programs within California.

A smaller portion of the projected proceeds is designated for education and food assistance. Supporters argue that channeling the bulk of the revenue into healthcare would address funding pressures in that sector while also supporting social services.

The measure’s design links a large, one-off revenue infusion to specific program areas rather than to the state’s general fund. This targeted approach has become a central point in the campaign’s messaging to voters.

Governor Gavin Newsom has come out against the billionaire tax initiative. He is aligned with a coalition that includes health-care organizations, education groups and business interests in opposing the measure.

Opponents argue that relying on a tax of this type could increase the volatility of California’s public finances. They warn that imposing a one-time levy on very wealthy residents may prompt some of them to leave the state, reducing future tax collections.

The initiative has also divided labor and advocacy organizations, with some unions backing the proposal and others joining the opposition. Business groups have raised concerns about the broader signal the measure sends about the state’s tax environment.

Progressive lawmakers and some labor groups support the wealth tax, framing it as a way to raise substantial funds from the state’s richest residents for public services. They argue that a one-time levy on extreme wealth is an appropriate response to fiscal pressures.

At the same time, Silicon Valley donors and other affluent opponents are mounting a vigorous campaign to defeat the measure. Both sides are preparing for extensive spending and advertising as they seek to shape voter opinion before November.

The conflicting positions among prominent Democrats, unions and business leaders signal a contentious debate over tax policy and how to fund healthcare and social programs in California. The November vote will determine whether the state adopts this unprecedented one-time wealth tax.