California Billionaire Tax Heads to Public Ballot

California voters may decide on a one-time “billionaire tax” this November after the Secretary of State confirmed the SEIU-UHW gathered the required 875,000 signatures. The proposal would levy a 5% tax on residents with assets over $1.1 billion to fund Medicaid, according to the New York Times and Politico.

Did You Know? To place an initiative on the California ballot, organizers were required to collect 875,000 valid signatures, a goal the SEIU-UHW achieved through a campaign that began earlier this year.

How would the proposed billionaire tax work?

The measure targets California residents holding at least $1.1 billion in assets with a one-time tax of 5% of those assets. According to the proposal, residents with assets between $1 billion and $1.1 billion would be subject to a lower tax rate.

The SEIU-UHW intends for the resulting revenue to fund Medicaid, the health insurance program for low-income individuals.

Expert Insight: Samantha Carter notes that this measure creates a high-stakes tension between the immediate need for healthcare funding and the risk of capital flight. The movement of high-net-worth individuals suggests that the perceived cost of the tax may outweigh the benefits of remaining in the state’s business ecosystem.

Which tech leaders have already left California?

Several high-profile executives have moved assets or residency as the tax debate intensified. Google co-founder Larry Page moved his residence to Miami, Florida, and closed or relocated 45 companies within California last year, according to the source.

Google co-founder Sergey Brin and Meta CEO Mark Zuckerberg have both purchased property in Florida, while Brin also acquired real estate in Nevada. Other executives, including PayPal founder Peter Thiel, former Uber CEO Travis Kalanick, and Oracle founder Larry Ellison, have either sold California property or announced plans to leave.

What happens next for the ballot measure?

The SEIU-UHW must officially file the initiative by the end of June. If this deadline is met, the tax proposal will appear on the November ballot for a public vote.

Full Interview | SEIU-UHW's Suzanne Jimenez on billionaire's tax

Governor Gavin Newsom has expressed opposition to the measure. In a previous interview, Newsom stated the initiative “will fail, without a doubt” and pledged to do what is necessary to protect the state.

Frequently Asked Questions

What is the specific tax rate for the wealthiest residents?
Residents with assets of $1.1 billion or more would be taxed at a rate of 5%.

What is the purpose of the tax revenue?
The funds are planned for use in the Medicaid budget to support healthcare for low-income residents.

Who is the primary opponent of the measure?
California Governor Gavin Newsom has voiced concerns and predicted the measure will be defeated.

Do you think one-time taxes on the wealthy are an effective way to fund public healthcare?