Supporters of a proposed one-time tax on California billionaires confirmed on Friday that the measure will appear on the November ballot, setting the stage for a contentious statewide debate. The proposal, backed primarily by the Service Employees International Union-United Healthcare Workers West (SEIU UHW), seeks to impose a 5 percent tax on the net worth of the state’s wealthiest residents, with the revenue intended to offset anticipated federal healthcare funding cuts affecting vulnerable populations.

California Secretary of State Shirley Weber certified the initiative early Friday, finalizing its place on the ballot for the November 3 election. The measure targets the approximately 250 billionaires residing in the state, whose combined wealth is estimated by proponents to exceed $2 trillion, potentially generating up to $100 billion in revenue. However, some analysts dispute this figure, suggesting the actual amount could be significantly lower, and predict possible losses in ongoing income tax revenue over time.

The campaign’s spokesperson, Debru Carthan of the Billionaire Tax Now Coalition, asserted strong public and grassroots support despite opposition from influential political figures and business leaders. Carthan criticized Governor Gavin Newsom and other officials for opposing the measure, accusing them of siding with wealthy interests over healthcare needs statewide. In response to mounting resistance, SEIU UHW offered a legislative compromise lowering the tax rate to 2 percent, an offer that Newsom’s administration declined by the Thursday deadline, resulting in no withdrawal of the ballot initiative.

The tax has surfaced significant divisions within the state’s Democratic Party and broader progressive movements. Advocates including Senator Bernie Sanders and Representative Ro Khanna argue the proposal represents a moral imperative to address economic inequality and fund essential services. Khanna described the measure as a test for the Democratic Party’s alignment with working-class voters versus wealthy donors.

Conversely, prominent Democrats, including Gov. Newsom and Xavier Becerra, express concerns that the tax could drive affluent residents and businesses out of California, ultimately reducing the state’s tax base and harming its economy. Newsom has called for a federal-level approach to wealth taxation, emphasizing the mobility of capital and taxpayers as a challenge to state-specific measures. Silicon Valley investors, such as Chris Larsen and Sergey Brin, have emerged as vocal opponents, with substantial financial backing for campaigns aimed at defeating the tax or invalidating it if passed.

Polling indicates a majority of likely voters support the tax, with approximately 54 percent in favor and notable bipartisan opposition split along party lines. Supporters face a significant financial disadvantage, as opponents are expected to outspend them by a wide margin, a historic factor influencing California ballot measure outcomes.

The tax would apply to individuals residing in California as of January 1, 2026, preventing last-minute relocations from affecting eligibility. Some billionaires have already relocated, while others have expressed varying degrees of acceptance toward the proposal.

Additional opposition comes from several unions, including some healthcare organizations and public safety groups, citing concerns over the measure’s focus and potential long-term impact on funding for other public services such as education and law enforcement.

As the campaign moves forward, SEIU UHW leaders acknowledge the opposition’s strength but remain committed to advancing the tax as a response to funding shortfalls in healthcare and a demonstration of political will to challenge wealth concentration in the state.