Overview
- SEIU–United Healthcare Workers West, which disclosed Monday it had gathered more than 1.5 million signatures, triggered the state verification process that requires 875,000 valid names to place the measure on the November ballot.
- The proposal would levy a one-time 5% tax on Californians with net worth above roughly $1 billion, applying to residents as of January 1, 2026, with payments allowed over five years and most revenue directed to health care.
- Backers cite an Institute on Taxation and Economic Policy estimate of about $100 billion over five years and say the money would help offset federal Medicaid cuts and keep hospitals and clinics from closing.
- Gov. Gavin Newsom and business groups argue the plan could push wealthy residents and jobs out of state, pointing to a Legislative Analyst’s Office warning of ongoing revenue losses and an opposition study projecting 108,000 job cuts, as reports detail moves by figures like Sergey Brin, Larry Page, Mark Zuckerberg and Peter Thiel.
- Opponents are advancing a rival Transparency Act funded by tech donors that includes provisions conflicting with the tax and could nullify it if both pass, setting up expensive campaigns and likely court fights over residency rules and the measure’s retroactive design.