A proposal to temporarily increase taxes on billionaires in California to counter federal cuts to healthcare for low-income people has sufficient public support to qualify for the November ballot, the state’s top elections official said. The proposal, backed by the Service Employees International Union Healthcare Workers West, would impose a one-time, 5% tax on individuals whose net worth exceeds $1 billion and who were living in the state as of Jan. 1, 2026.

Details of the Proposal

The goal is to generate $100 billion in revenue, mainly to fund the state’s Medicaid system with some money going to food assistance and education programs. Critics say the measure would decrease state revenue over time by pushing the ultrawealthy to leave, taking the money they would contribute in income taxes with them.

States have been debating how to respond to the major tax breaks and spending cuts legislation President Donald Trump signed last year. The proposal has already divided Democrats and major labor unions and triggered an expensive campaign to defeat it. The proposed tax is backed by prominent progressives including Vermont Sen. Bernie Sanders.

The nonpartisan Legislative Analyst’s Office estimates that the proposal would generate tens of billions of dollars in the first few years, but that income tax revenues could subsequently decline by hundreds of millions of dollars annually.

Original reporting: KTBS 3 (Shreveport) — read the source article.