California voters to decide billionaire tax measure

California’s billionaire wealth tax officially qualified for the November ballot.

The measure aims to raise billions of dollars to strengthen healthcare, public education, and food assistance programs, making it one of the state’s most closely watched initiatives this election.

The California Billionaire Tax Act would impose a one-time 5% tax on Californians with a net worth of at least $1.1 billion. Supporters say the measure would bring in $100 billion over five years.

However, Governor Gavin Newsom opposed the tax, arguing that wealthy residents could avoid it by moving to lower-tax states. He also said the proposal would direct most of its revenue to healthcare.

The proposal faces resistance from billionaires, as well as from unions and Democratic-aligned groups, which warn it could undermine income tax revenue and weaken support for future taxes on high earners.

Instead, Newsom unveiled a proposal for a nationwide billionaire tax, arguing that the federal government, not individual states, is best placed to tax the country’s wealthiest Americans. 

His plan would introduce a federal minimum tax on individuals with income over $100 million. He also wants to restore corporate tax rates to their pre-2017 levels, eliminate offshore tax loopholes used by multinational companies, and overhaul inheritance laws. 

He warned that nearly $124 trillion is expected to pass between generations over the next two decades, saying stronger tax policies are needed to prevent wealth from becoming increasingly concentrated.

Back in California, the measure would affect about 250 billionaires.

According to a May poll from the Public Policy Institute of California, 54% of likely voters favor the proposed tax.

Advocates have pledged to continue campaigning for the measure’s approval, while opponents have raised more than $118 million, including $80 million from Google co-founder Sergey Brin, to defeat the initiative.