Overview
- The proposal from SEIU–UHW would impose a one-time 5% levy on Californians with net worth above about $1.1 billion and backers say it could raise roughly $100 billion over five years.
- Supporters reported submitting about 1.55 million signatures — nearly double the roughly 875,000 required — to qualify the measure for the ballot.
- Governor Gavin Newsom is actively pressing lawmakers and unions to strike a compromise before the June 25 deadline, a push that has driven prediction-market odds that the measure will reach the ballot sharply lower.
- Wealthy residents and their advisers are already using tax-planning steps such as accelerated philanthropy, asset restructuring, buying property outside California, delaying funding rounds, or moving residences to reduce exposure.
- Coalitions are shifting: some progressive groups and unions support the tax while other typically aligned organizations and teachers unions oppose it, leaving the likely path as either a legislative deal, a legal fight, or a November vote.