Wealth tax measure could be headed to California voters

Bloomberg News

A healthcare union and Los Angeles-area community hospital have proposed a billionaire's tax for California's statewide ballot in November 2026 to help fund healthcare and education.

The ballot initiative proposed by Service Employees International Union-United Healthcare and St. Johns Community Health in Los Angeles would levy a one-time, 5% tax on the nearly 200 billionaires in the state, generating roughly $100 billion in revenue, according to proponents.

The measure isn't likely to garner support from Gov. Gavin Newsom, who — during his January 2024 budget reveal press conference — bristled at the idea he would support a wealth tax.

The group, calling itself Save California Health Care and Public Education, claimed the state is facing tens of billions of dollars of healthcare cuts over the next five years that could result in emergency room closures and the loss of needed services. One out of ten dollars of the measure's revenue would be used to shore up K-12 funding, which is also expected to see direct and indirect impacts from looming federal cuts.

Medicaid cuts are expected next year as part of the Republican-crafted One Big Beautiful Bill Act President Trump signed in July.

"These federal cuts didn't happen by accident — they were designed to shield billionaires from contributing while pushing the consequences onto patients and workers," Robert Reich, former U.S. Secretary of Labor, said at a press conference Thursday. "A time-limited emergency tax on the ultra-wealthy is a practical way to keep the healthcare system functioning." 

The California Budget & Policy Center said up to 3.4 million people could lose Medi-Cal coverage and the state could lose $30 billion in federal funding each year.

OBBBA affects Medi-Cal both by imposing financing restrictions that strip billions in federal support and by creating eligibility and access barriers that make it harder for people to stay covered, according to the California Budget & Policy Center.

"We are already short-staffed, and every week more patients walk through the doors with fewer places to go," said Mayra Castaneda, an ultrasound technologist in Lynwood, California. "If these cuts take effect without replacement funding, it won't just mean longer lines, it means people won't be able to get care when they need it."

In order to get the measure on the November 2026 ballot, backers will have to get more than 870,000 signatures by spring, following approval from state Attorney General Rob Bonta to begin the petition process.