California ‘billionaire tax’ proposal will likely appear on November ballot — even Newsom opposes

A California proposal that would implement a one-time tax on the state’s wealthiest residents has qualified to appear on the ballot in November, according to Secretary of State Shirley Weber.

The so-called billionaire tax exceeded the required signature threshold Wednesday and is expected to be certified by Weber on June 25. The health care union behind the proposal, Service Employees International Union-United Healthcare Workers West, still has the option to withdraw the proposal before the confirmation deadline.

‘I’ll do what I have to do to protect the state.’

If enacted, the proposal would impose a tax of up to 5% on the net worth of California billionaires, with the full rate applying to those worth more than $1.1 billion, retroactive to anyone with primary residency in the state as of Jan. 1, 2026. Certain exemptions exist, including directly held real estate and qualifying retirement accounts.

The proposal also requires that 90% of the collected revenue be spent on health care, with the remaining 10% divided between education and food assistance spending. The estimated revenue that would be raised is $100 billion.

Supporters of the tax claim the money would assist in covering budget shortfalls caused by federal funding cuts in the One Big Beautiful Bill Act, Trump’s signature budget legislation that was passed last year. The proposal’s website says it would prevent the closure of hospital emergency rooms and nursing homes across the state.

Rep. Ro Khanna (D-Calif.) and Sen. Bernie Sanders (I-Vt.) have been avid supporters of the tax, believing it will reduce wealth inequality, and Nvidia CEO Jensen Huang said he is “perfectly fine” with paying the tax. The Tax Foundation estimates that Huang would potentially owe $8.5 billion to the state.

RELATED: Gavin Newsom cries political witch hunt — but are feds focused on an alleged $1.5M nonprofit pipeline to wife’s business?

Patrick T. Fallon/AFP/Getty Images

However, many notable Democratic officials and organizations have come out in opposition to the tax. Governor Gavin Newsom told the New York Times, “This will be defeated,” adding, “I’ll do what I have to do to protect the state.”

Even the California Teachers Association and Planned Parenthood Affiliates of California are not supporting the proposal.

Critics argue that the tax will further repel job creation and investment, worsening the exodus of wealthy residents and corporations from the state.

Google co-founders Larry Page and Sergey Brin have already moved portions of their assets and business structures out of California, and Palantir co-founder Peter Thiel reportedly has been considering leaving the state as a result of the tax proposal.

Come November, the proposal would require only a simple majority to pass, if certified next week.

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