California Democrats voted over the weekend to endorse a ballot measure that would impose a one-time wealth tax on the state’s billionaires, giving a boost to the proposal just three months before voters decide its fate.
The measure would levy a one-time 5% tax on the wealth of California residents who were billionaires as of Jan. 1, 2026. The state is home to more than 200 billionaires, many of them concentrated in Silicon Valley and Hollywood, who would be subject to the tax if the initiative passes.
The proposal was spearheaded by the Service Employees International Union-United Healthcare Workers West, which argued the “emergency” tax is needed to offset healthcare funding cuts stemming from President Donald Trump’s One Big Beautiful Bill Act. Under the measure, 90% of the estimated revenue would go toward California’s healthcare system, while the remaining 10% would fund public education and food assistance programs.
“This endorsement puts to rest the idea that California Democrats are not united by the billionaire tax—they are,” said Dave Regan, president of SEIU-United Healthcare Workers West.
The proposal has garnered support from progressives, including Rep. Ro Khanna (D-CA) and Sen. Bernie Sanders (I-VT), but has also exposed divisions within the Democratic Party. Gov. Gavin Newsom (D-CA), widely seen as a top 2028 presidential contender, has opposed the tax since it was introduced, rejecting proposals to lower the rate. Negotiations between Newsom’s administration and the union ultimately broke down, allowing the measure to qualify for the November ballot.
Republicans have also blasted the proposal, arguing it would encourage wealthy residents and business leaders to leave California over concerns that a one-time tax could pave the way for future wealth levies.
California wealth tax proposal deserves a hard pass
“This is something that just captures so perfectly the stupidity and the failure of 16 years of one-party rule,” Republican gubernatorial candidate Steve Hilton, who is backed by Trump, said of the proposal. Democratic gubernatorial candidate and former Health and Human Services Secretary Xavier Becerra has also voiced opposition.
Supporters say the tax could generate roughly $100 billion, with the bulk of the revenue earmarked to backfill healthcare funding lost because of federal spending cuts. Independent polling has found strong support for the proposal among California Democrats and narrower majority support among the state’s overall electorate.
