Labor and health‑care groups filed paperwork last Tuesday to put a one‑time, 5% 'Billionaire Tax Act' before California voters in November 2026. The proposal would levy the charge on the net worth of roughly 200 residents worth at least $1 billion and, according to backers, raise about $100 billion to shore up Medi‑Cal and public K‑12 funding. Organizers say payments could be spread over five years and that they will launch a signature drive to qualify the measure.
In a post, SEIU‑UHW says it submitted the proposal to state officials and framed the 5% levy as an emergency step to protect health care facilities. The campaign page says the tax would apply only to Californians with net worth above $1 billion and that payments could be made in installments over five years.
As reported by ABC News, Associated Press coverage says backers estimate the tax would generate about $100 billion and direct 90% to Medi‑Cal with 10% reserved for public K‑12 programs. That reporting adds organizers have asked the state attorney general for permission to begin collecting signatures.
How the tax would be measured and collected
The initiative would tax billionaires' 2025 net worth and, according to CalMatters, would not apply to people who move to California after that year. CalMatters also reports the campaign needs 874,641 valid signatures to place the measure on the November 2026 ballot and that revenue would go into a special fund earmarked for health care and education.
Supporters' pitch
Backers say the levy is a direct response to large federal Medicaid cuts and an urgent way to keep clinics and hospitals operating. At a news conference, SEIU‑UHW president Dave Regan warned, "If we do not do this, millions of people are going to lose health care," and UC Berkeley economist Emmanuel Saez said the 5% rate is modest relative to billionaire wealth growth, according to ABC News.
Opposition and legal questions
Opponents, including taxpayer groups, say a wealth levy could set a dangerous precedent and prompt wealthy residents to leave the state, creating long‑term fiscal risks. CalMatters notes Gov. Gavin Newsom has historically opposed wealth taxes and that earlier legislative attempts to tax extreme wealth stalled, so the ballot push could invite both political pushback and court fights.
What comes next
SEIU says it submitted paperwork last week and that signature collection will begin soon, with organizers aiming to gather roughly 874,000 signatures to qualify for the 2026 ballot. SEIU‑UHW says volunteers and allied unions will staff the drive and that, if the measure qualifies, Californians would face a high‑stakes campaign over the coming year.
If voters approve the measure it would mark an unprecedented test of a state wealth levy and almost certainly prompt legal challenges and an intense campaign season through 2026.
