California Billionaire Tax Proposal Qualifies for November Ballot as Business Leaders Scramble

State and business leaders scramble to prevent the proposal from advancing in fear of economic fallout.
A California proposal that would implement a one-time tax on the state’s wealthiest residents has qualified to appear on the ballot in November, according to Secretary of State Shirley Weber.
The so-called billionaire tax exceeded the required signature threshold Wednesday and is expected to be certified by Weber on June 25. The health care union behind the proposal, Service Employees International Union-United Healthcare Workers West, still has the option to withdraw the proposal before the confirmation deadline.
“I’ll do what I have to do to protect the state.”
If enacted, the proposal would impose a tax of up to 5% on the net worth of California billionaires, with the full rate applying to those worth more than $1.1 billion, retroactive to anyone with primary residency in the state as of January 1, 2026. Certain exemptions exist, including directly held real estate and qualifying retirement accounts.
The proposal also requires that 90% of the collected revenue be spent on health care, with the remaining 10% divided between education and food assistance spending. The estimated revenue that would be raised is $100 billion.
Supporters claim the money would assist in covering budget shortfalls caused by federal funding cuts in the One Big Beautiful Bill Act, Trump’s signature budget legislation that was passed last year. The proposal’s website says it would prevent the closure of hospital emergency rooms and nursing homes across the state.