Union backs California proposal for one-time 5% billionaire tax

California’s wealthiest residents might face a one-time 5% tax on their wealth underneath a brand new proposal aimed toward changing billions of {dollars} in federal well being care cuts.

The measure — dubbed the “2026 Billionaire Tax Act” — is meant to counter $30 billion in potential federal cuts to California’s Medicaid program, with among the income earmarked for public schooling, in response to supporters together with the Service Staff Worldwide Union (SEIU).

Supporters of the measure despatched a request to the California lawyer normal’s workplace on Oct. 21 in search of approval to gather signatures.

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Billionaires in California might quickly face a one-time 5% tax on their wealth underneath a brand new proposal aimed toward changing billions of {dollars} in federal well being care cuts. (iStock / iStock)

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Supporters of the measure argue that California’s roughly 200 billionaires personal about $2 trillion in wealth, however the state’s remaining 19 million taxpayers pay a “a lot bigger share” of their precise earnings.

“If we do not do that, tens of millions of individuals will lose well being care, untold numbers of individuals will go with out therapy, and tragedy after tragedy will observe,” Dave Regan, president of SEIU-United Healthcare Staff West, mentioned in an announcement. to Newsweek.

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The measure would wish to gather greater than 870,000 signatures subsequent spring to be positioned on the November 2026 poll. Realtor.com reports this.

If the proposal is applied, California’s wealthiest residents, together with tech executives like Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang, might face large payments.

The proposal additionally comes because the state continues to wrestle with inhabitants outflows to lower-tax states like Florida.

Extra Individuals left California than every other state between 2023 and 2024. Newsweek reports thisciting Census Bureau knowledge.

If enacted, the measure might imply large payments for a few of California’s wealthiest residents, together with tech executives like Mark Zuckerberg. (Tom Williams/CQ-Roll Name, Inc through Getty Photographs)

“Miami represents a brand new begin, a refreshing reset. I feel it is a spot the place coverage, economics and way of life match collectively very effectively,” Camilo Miguel, Jr., CEO of Mast Capital, whose firm is creating the Cipriani Residences Miami and The Perigon Miami Seashore, just lately instructed Fox Information Digital.

Earlier this yr, President Donald Trump signed the One Huge Stunning Invoice Act, which incorporates about $1.2 trillion in cuts over 10 years, largely resulting from modifications in spending on well being care packages.

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The Service Staff Worldwide Union didn’t instantly reply to FOX Enterprise’ request for remark.

Eric Revell and Kristen Altus of FOX Enterprise contributed to this report.