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Sanders Kicks Off California Billionaire Tax Push as Tech Donors Fund Counteroffensive

A union-backed plan to levy a one-time 5% charge on 2026 California billionaires to bolster healthcare faces a fierce political, legal, and fiscal challenge.

Overview

  • Bernie Sanders launched the public campaign at a Los Angeles rally, urging support as organizers gather roughly 875,000 signatures to qualify the November 2026 ballot measure.
  • The proposal would impose a single 5% tax on residents with net worth above $1 billion based on Jan. 1, 2026 status, with most proceeds earmarked for healthcare and payments allowed over five years.
  • Gov. Gavin Newsom opposes the measure, warning of competitiveness and revenue risks, while union backers frame it as a response to federal Medicaid cuts starting in 2027.
  • Opposition groups backed by tech billionaires have raised about $35 million and are advancing rival initiatives to bar retroactive taxes and constrain how new tax revenues are used.
  • Rep. Kevin Kiley plans federal legislation to block states from retroactively taxing former residents, as reports of billionaire relocations and asset-valuation disputes fuel doubts about implementation and revenue.