California Billionaires Targeted by Proposed One-Time 5% Wealth Tax Initiative

Labor unions and healthcare advocates have introduced a ballot measure that would impose a one-time 5% tax on fortunes exceeding $1 billion. The plan specifically targets California’s roughly 200 billionaires who hold over $2 trillion in combined wealth.

This initiative responds directly to looming federal funding cuts that threaten Medi-Cal and public education budgets. Proponents believe the ultra-wealthy should contribute more during the state’s fiscal emergency without burdening working families.

California allows citizens to place measures on the ballot through signature collection if they gather enough valid petitions. This process has previously led to major changes like property tax limits and marijuana legalization.

The 2026 Billionaire Tax Act would calculate the tax based on 2025 net worth including stocks, trusts, and global assets. Payments could spread over five years with interest while excluding real estate and certain personal property up to certain limits.

The proposal includes strong anti-evasion rules to ensure assets cannot simply move offshore or into exempt categories. Supporters highlight that billionaires currently pay far less of their wealth in taxes than nurses, teachers, or firefighters.

It is true that SEIU-United Healthcare Workers West and allied groups have filed this initiative with the state. Multiple reports confirm the one-time 5% levy aims to raise approximately $100 billion for health and education programs.

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