A controversial ballot measure proposing a one-time 5% tax on California residents with assets of at least $1.1 billion has officially qualified for the November 3 ballot. The initiative, backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), aims to generate tens of billions in revenue, with 90% of the funds dedicated to healthcare programs and the remainder allocated to food assistance and education. The measure will appear on the ballot unless supporters withdraw it before June 25.
The proposal has sparked intense debate, with progressive advocates like Rep. Ro Khanna (D-CA) and Sen. Bernie Sanders (I-VT) supporting the tax as a means to increase revenue for healthcare, while opponents, including Gov. Gavin Newsom (D-CA), argue it could drive high earners and investment out of the state. Newsom, who is expected to run for president in 2028, has vowed to defeat the measure, signaling a willingness to spend political capital to block it. Other Democratic candidates, including Steve Hilton and Xavier Becerra, have also opposed the proposal.
Supporters argue the tax is necessary to offset federal healthcare funding cuts enacted under President Donald Trump’s domestic policy package. State analysts project the measure could generate significant revenue over time, though opponents warn it could weaken California’s economy and budget, which relies heavily on income taxes from high earners. The debate highlights the growing divide between the rich and poor in California, where the cost of living is already high.
The initiative would impose the tax on individuals and trusts with assets exceeding $1 billion, with payments spread over five years. The measure has exposed fissures within the Democratic Party, pitting progressive advocates against business groups and centrist Democrats. The outcome of the ballot measure could have far-reaching implications for California’s economy and its ability to fund essential services.