Updated

Updated · Los Angeles Times · Jun 18

California Qualifies 5% Billionaire Tax for November Ballot as $100 Billion Fight Intensifies

Updated

Updated · Los Angeles Times · Jun 18

California Qualifies 5% Billionaire Tax for November Ballot as $100 Billion Fight Intensifies

Q: What compromise could be reached before the deadline to avoid a costly ballot fight over the billionaire tax?

The likeliest compromise is a legislative deal that gives SEIU-UHW a different, more durable source of health-care money in exchange for withdrawing the billionaire-tax initiative before the late-June deadline. The most discussed path is replacing the one-time 5% wealth tax with other revenue measures that can be enacted in Sacramento. One option backed by some lawmakers is a fee on large employers whose workers rely on Medi-Cal, which has been estimated to raise up to about $8 billion a year. Another is to redirect or dedicate more revenue from California’s managed-care organization tax or other health-plan taxes specifically to Medi-Cal and hospital funding, rather than leaving it in the general fund. A broader package could also include corporate-tax changes already under discussion in the budget, such as limiting business tax credits, taxing software or digital services, or closing multinational tax loopholes. That would let Newsom and lawmakers argue they are protecting health care without adopting a legally risky wealth tax that opponents say could trigger outmigration and years of court fights. For SEIU-UHW, the key condition would be guaranteed funding substantial enough to help avert hospital closures, service cuts and job losses. For Newsom and business opponents, the key gain would be avoiding an expensive statewide campaign over a tax many critics view as hard to administer and vulnerable to constitutional challenge.

3 articles · Updated · Los Angeles Times · Jun 18

Nearly 1.6 million signatures pushed California’s billionaire tax initiative over the line, and the secretary of state said it has enough valid signatures to reach the Nov. 3 ballot unless supporters withdraw by June 25.
The measure would impose a one-time tax of up to 5% on residents and trusts worth more than $1 billion, payable over five years, with supporters estimating about $100 billion in revenue.
Ninety percent of the money would go to healthcare, with the rest for food assistance and education, as backers argue it would offset federal healthcare cuts approved by Trump and Congress.
Gov. Gavin Newsom, business leaders and some Democrats oppose the plan, warning it could drive billionaires out of California and worsen a tax base already heavily reliant on top earners.
Opponents are already well funded: anti-tax groups have drawn roughly $118 million, including more than $82 million from Google co-founder Sergey Brin, setting up an expensive statewide battle.

Sources

Left73%

Center27%

Los Angeles Times33d ago

California Billionaire Tax Proposal (Up to 5%) Qualifies for November Ballot

The New York Times33d ago

California Billionaire Tax Proposal Secures Ballot Signatures for November Vote

GV Wire 33d ago

As Ballot Deadline Nears, Will CA Billionaire Tax Actually Go to Voters? - GV Wire

13 Sources

Will California's billionaire tax secure public funding, or will capital flight create an even larger budget hole?

What compromise could be reached before the deadline to avoid a costly ballot fight over the billionaire tax?

Billionaire Tax Showdown: California’s 2026 Ballot Initiative and Its Impact on State and National Policy

Overview

The 2026 Billionaire Tax Act is a major California initiative heading for the November 2026 ballot. It aims to address the state’s financial challenges by generating revenue through a tax on the wealthiest individuals, specifically billionaires. The funds from this tax are intended to support essential state services, with advocates stressing the need to keep California running and prevent issues like clinic closures and loss of health care coverage for families. The Act has sparked strong debate, with supporters highlighting its importance for public welfare and opponents warning of economic risks and legal challenges.

...