Wealth tax measure could possibly be headed to California voters

A healthcare union and Los Angeles-area group hospital have proposed a billionaire’s tax for California’s statewide poll in November 2026 to assist fund healthcare and schooling.

The poll initiative proposed by Service Staff Worldwide Union-United Healthcare and St. Johns Group Well being in Los Angeles would levy a one-time, 5% tax on the almost 200 billionaires within the state, producing roughly $100 billion in income, in keeping with proponents.

The measure is not more likely to garner help from Gov. Gavin Newsom, who — throughout his reveal press convention — bristled on the concept he would help a wealth tax.

The group, calling itself Save California Well being Care and Public Schooling, claimed the state is dealing with tens of billions of {dollars} of healthcare cuts over the following 5 years that might end in emergency room closures and the lack of wanted companies. One out of ten {dollars} of the measure’s income could be used to shore up Ok-12 funding, which can also be anticipated to see direct and oblique impacts from looming federal cuts.

Medicaid cuts are anticipated subsequent 12 months as a part of the Republican-crafted One Huge Lovely Invoice Act President Trump signed in July.

“These federal cuts did not occur by chance — they had been designed to protect billionaires from contributing whereas pushing the results onto sufferers and employees,” Robert Reich, former U.S. Secretary of Labor, stated at a press convention Thursday. “A time-limited emergency tax on the ultra-wealthy is a sensible strategy to hold the healthcare system functioning.” 

The California Price range & Coverage Middle stated as much as 3.4 million folks might lose Medi-Cal protection and the state might lose $30 billion in federal funding annually.

OBBBA impacts Medi-Cal each by imposing financing restrictions that strip billions in federal help and by creating eligibility and entry obstacles that make it tougher for folks to remain coated, in keeping with the California Price range & Coverage Middle.

“We’re already short-staffed, and each week extra sufferers stroll by the doorways with fewer locations to go,” stated Mayra Castaneda, an ultrasound technologist in Lynwood, California. “If these cuts take impact with out substitute funding, it will not simply imply longer strains, it means folks will not be capable of get care once they want it.”

With a view to get the measure on the November 2026 poll, backers must get greater than 870,000 signatures by spring, following approval from state Legal professional Basic Rob Bonta to start the petition course of.