The campaign for California's proposed retroactive wealth tax, known as the California Billionaire Tax Act, has reached a significant milestone. The Service Employees International Union–United Healthcare Workers West (SEIU-UHW) announced that it has gathered over 1.55 million signatures, nearly double the required 875,000, to qualify the measure for the ballot.
The tax would specifically target approximately 200 Californian billionaires, imposing a one-time 5% tax on their net worth, payable in 2027. Residents with assets exceeding $1 billion would be liable for this tax, which could be paid over five years with accrued interest. For instance, an individual with a net worth of $20 billion as of January 1, 2026, would owe $1 billion.
Supporters of the tax argue that it is a necessary response to cuts in federal health programs, emphasizing its potential to fund healthcare services and support emergency rooms. SEIU-UHW representatives have characterized the initiative as a means to protect California's healthcare system from significant funding reductions.
However, the proposal has faced opposition. Critics warn that the tax could lead to substantial job losses—estimated at around 108,000 high-paying positions over two decades—and that it may deter investment in the state. California Governor Gavin Newsom has expressed concerns about the economic implications of the tax, suggesting it could encourage wealthy residents to relocate their assets or businesses outside of California.
The Legislative Analyst’s Office indicated that while there may be a temporary influx of revenue from the tax, it could result in long-term declines in state income tax revenues if billionaires choose to leave the state in response. High-profile figures such as Google co-founders Larry Page and Sergey Brin, and Meta's Mark Zuckerberg have already moved their business interests elsewhere, highlighting the ongoing debate surrounding the proposed tax.