California billionaire tax heads to November ballot vote

California is set for a statewide vote in November on a proposed one-time tax aimed at billionaires’ assets after organizers said the measure cleared the signature threshold to reach the ballot. The campaign, led by the Service Employees International Union-United Healthcare Workers West, said it gathered more than 1.5 million signatures. That total exceeds the 870,000 signatures required to qualify, according to the campaign.

Under the initiative, billionaires would face a one-time 5% levy on their assets. Supporters said proceeds would be directed to health services for lower-income individuals. They have presented the proposal as a response to funding gaps they say emerged after federal funding cuts enacted last year.

The campaign said the tax would apply retroactively to people who were billionaires residing in California as of January 1. The description of covered holdings spans multiple categories, including stocks, art, businesses, collectibles, and intellectual property. Supporters have pointed to that broad scope as central to the measure’s design.

The ballot contest is unfolding in a state described as home to hundreds of billionaires and one that depends heavily on high earners for revenue. California collects nearly half of its personal income tax revenue from the top 1% of earners, a concentration that helps support the state’s approximately $350 billion budget. That reliance has become a key point in arguments both for and against the initiative.

Opposition has coalesced among prominent Silicon Valley figures, with tech executives backing efforts to defeat the measure. Former Google CEO Eric Schmidt and Alphabet president Sergey Brin have contributed millions to campaigns opposing the tax, according to information cited by supporters and opponents in the public debate.

California Governor Gavin Newsom also opposes the proposal, arguing that such a levy could weaken the state’s economic position and encourage wealthy residents to move elsewhere.

Analysts cited in the debate have said that if billionaires were to leave, California could forgo hundreds of millions of dollars in tax revenue. Supporters have challenged that risk assessment, saying the likelihood of a large-scale departure is overstated and that additional healthcare funding for lower-income Californians is necessary. How voters weigh those competing claims remains uncertain ahead of November.

The vote is expected to draw attention beyond California because of the state’s role in the U.S. technology sector and its importance to global capital markets. Investors, business leaders, and policymakers are watching the campaign as a test of how far a major economy is willing to go in taxing concentrated wealth to fund public services. The outcome will also shape the political debate over revenue stability in jurisdictions that rely heavily on top earners.