California School Boards Association

California voters will consider a proposal to temporarily tax billionaires at 5% to fund Medicaid, supported by a labor union despite opposition from Governor Gavin Newsom and a coalition of healthcare and education groups. Critics argue the tax would drive wealthy residents out of the state and destabilize revenue, while opponents like Sergey Brin have spent millions to block it.

California voters will consider a proposal to temporarily tax billionaires at 5% to fund Medicaid after federal cuts. The measure, backed by a labor union, faces opposition from Democratic Gov. Gavin Newsom and a coalition of healthcare, education, and housing groups who argue it would destabilize state revenue and drive wealth away.

A labor union scaled back its proposal for a one-time 5% tax on California billionaires to 2%, but Governor Gavin Newsom rejected the compromise. The revised tax aims to generate $100 billion for healthcare and education but faces opposition from Newsom and groups like the California Medical Association, who argue it would harm state revenue and public services.

A California labor union scaled back its proposed 5% billionaires tax to 2% after pushback, but Governor Gavin Newsom rejected the revised plan. The tax aims to generate $100 billion for healthcare and other programs but faces opposition from critics including Newsom, the California Medical Association, and Silicon Valley tech moguls.

A proposal to temporarily increase taxes on billionaires in California to counter federal cuts to healthcare for low-income people has sufficient public support to qualify for the November ballot. The proposal, backed by the Service Employees International Union Healthcare Workers West, would impose a one-time, 5% tax on individuals with a net worth over $1 billion as of Jan. 1, 2026, aiming to generate $100 billion for Medicaid, food assistance, and education. Critics, including tech moguls and Governor Gavin Newsom, argue it could reduce state revenue by driving the wealthy out, and a similar 2022 measure was rejected by voters.

A proposal to impose a 5% tax on California residents with a net worth over $1 billion to fund Medicaid, food assistance, and education has enough signatures to qualify for the November ballot. The measure faces opposition from tech moguls, Governor Gavin Newsom, and groups like the California Medical Association, while billionaire Sergey Brin has donated $82 million to oppose it.