SACRAMENTO, CA — Supporters of a proposed wealth tax targeting California billionaires say they have gathered enough signatures to place the measure before voters in November, setting up a high-stakes political and economic debate.
Backers of the initiative report collecting more than 1.5 million signatures, well above the roughly 870,000 required. The proposal would impose a one-time 5% tax on billionaire assets, including stocks, businesses, and other holdings, with revenue aimed at offsetting federal cuts to health programs for lower-income residents.
The measure, supported by the Service Employees International Union, has drawn strong backing from progressive figures, including Sen. Bernie Sanders and Rep. Ro Khanna. Advocates argue the tax would help sustain hospitals and health systems facing funding pressures.
Opposition has been equally forceful. Gov. Gavin Newsom has resisted state-level wealth taxes, warning they could harm California’s economy. Major tech figures, including Alphabet co-founder Sergey Brin, have contributed millions to efforts aimed at defeating the measure.
Business groups argue the tax could drive wealthy residents and investment out of the state, while supporters counter that such concerns are overstated. Analysts say the outcome could have significant implications for California’s budget and future economic policy.
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