Overview
- Backed by a major health care union, the measure would impose a single 5% tax on Californians with assets over $1 billion to fund low‑income health services following federal cuts.
- Sanders’ appearance in Los Angeles elevates progressive support, highlighting a public split with Gov. Gavin Newsom, who warns the tax could harm state finances and competitiveness.
- Supporters must collect more than 870,000 valid signatures to reach the ballot, as both sides ramp up spending and targeted outreach with millions already flowing into political committees.
- Opposition from tech and business figures has intensified, with reports of threats to leave the state and analysts cautioning an exodus could cost California hundreds of millions in revenue.
- The proposal faces political and legal hurdles, and its design includes an option to spread payments over five years to address liquidity and valuation concerns.