Measure qualifies despite governor's opposition
California's proposed Billionaire Tax Act qualified for the November ballot on Wednesday after gathering enough signatures, California Secretary of State Shirley Weber announced. The measure will be officially certified on June 25. The one-time 5% wealth tax would apply to any California resident worth more than $1 billion and would fund healthcare, food assistance, and education programs, according to backers at the Service Employees International Union-United Healthcare Workers West (SEIU-UHW).
The qualification marks a major victory for labor organizers after the coalition submitted more than 1.55 million signatures by late April, more than double the required threshold.
Tech billionaires mobilize millions in opposition
Google co-founder Sergey Brin has spent at least $82 million alone fighting the tax and relocated to the Nevada side of Lake Tahoe, just over the California border. Other tech leaders opposing the measure include Google co-founder Larry Page, Meta co-founder Mark Zuckerberg, Palantir co-founder Peter Thiel, former Google CEO Eric Schmidt, crypto billionaire Chris Larsen, and DoorDash CEO Tony Xu, all of whom donated millions to defeat it.
Governor Gavin Newsom has vowed to block the measure, arguing that state-level wealth taxes "drive a race to the bottom" and would chase billionaires out of California and strip the state of revenue.
Backers propose lower rate to strike a deal
The Billionaire Tax Now Coalition sent a letter to Newsom on Thursday proposing a compromise: a 2% one-time tax instead of 5%. The coalition framed the lower rate as modest and appropriate given the state's healthcare crisis. "A 2% one-time tax on that accumulated wealth is modest by any objective measure, especially if it means keeping emergency rooms open and saving patient lives," the letter stated.
The coalition has until June 25 to decide whether to allow the measure to be officially certified for the ballot or withdraw it to pursue negotiations with Newsom. Political science professor David McCuan at Sonoma State University characterized the measure as a negotiating tool designed to pressure the governor into a deal rather than face a costly ballot battle.
One billionaire breaks ranks
Jensen Huang, CEO of Nvidia, stands apart from other tech moguls in his willingness to accept the tax. During a talk at Stanford Graduate School of Business in April, Huang said he chose to remain in Silicon Valley despite California's high taxes. "I say to everybody: 'Move to California. Don't leave.' It's the highest taxes in the world, but it's OK," he stated.
The California Teachers Association, State Building and Construction Trades Council of California, California Medical Association, and Planned Parenthood Affiliates of California have all stepped in to oppose the measure, while California congressman Ro Khanna and several local unions support it.
