Supporters of a billionaire tax said Sunday that they had gathered nearly twice as many signatures as necessary to qualify the controversial proposal for the November ballot.
Opponents of the proposal argue that it already has driven wealthy Californians — crucial to funding the state’s volatile budget — to other parts of the nation. Advocates, however, say the proposed tax is critical to compensate for federal healthcare funding cuts that will harm the state’s most vulnerable residents.
“Most Californians and most billionaires recognize how reasonable and necessary this proposal is — both to keep emergency rooms open and to save California businesses from closing,” said Suzanne Jimenez, the chief of staff of the Service Employees International Union-United Healthcare Workers West, the chief proponent of the effort. “A very small group of the most controversial billionaires on the planet tried to stop” this effort, she added, but when “our growing coalition files these signatures, David will have won the first round against Goliath.”
The union, which represents more than 120,000 healthcare workers, patients and consumers, launched the effort to counter massive healthcare funding cuts that President Trump signed last year. The California Budget & Policy Center estimated that as many as 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could shutter, and other healthcare services would be slashed unless new funding was found.
The proposal would impose a one-time tax of up to 5% on taxpayers and trusts with assets valued at more than $1 billion, with some exclusions, such as property. The levy could be paid over five years. Ninety percent of the revenue would fund healthcare programs, and the remaining funds would be spent on food assistance and education programs. The proposal would cost the state’s richest residents about $100 billion if a majority of voters support it.
Supporters need to submit the signatures of nearly 875,000 registered voters to county elections officials by June 24. They say they have gathered nearly 1.6 million signatures.
Opponents of the measure, which has divided liberals — Sen. Bernie Sanders (I-Vt) supports it while Democratic California Gov. Gavin Newsom opposes it — said the proposal would destroy California’s economy and budget, while doing nothing to address the state’s underlying financial issues.
“This wealth tax would have a devastating impact on our economy, state budget, and the cost of living for all Californians,” said Rob Lapsley, president of the bipartisan California Business Roundtable. “The measure doesn’t do anything to reduce the state’s $35-billion-plus budget deficit and does nothing to address the decade of overspending that led to the structural deficit. In fact, because the state relies so heavily on high-income-earner tax revenue, this measure could lead to reduced budget revenue in the long term as highly mobile wealthy individuals leave the state to avoid this new tax.”
He also argued that the proposal could result in higher taxes for all Californians.
“This is an everyone tax that is called a billionaire tax,” Lapsley said, “and we will ensure Californians understand the truth on the devastating consequences this initiative will have.”
