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Ballot Measure · California Tax · Healthcare Funding · Wealth Tax
California's proposed one-time 5% tax on billionaire assets, backed by the healthcare union SEIU-UHW to offset federal healthcare cuts, qualified for the November ballot, but proponents are negotiating with Governor Gavin Newsom to withdraw it before a late June deadline.
The measure, confirmed by the California Secretary of State, faces strong opposition from state Republican leaders, some Democrats including Governor Newsom, business groups, and Silicon Valley leaders, who argue it drives away business and investment from the state. Conversely, proponents, including Vermont Senator Bernie Sanders, assert the tax is crucial for supporting vital healthcare services that have been significantly impacted by federal cuts.
A potential deal with lawmakers and Governor Newsom will lead to its removal from the ballot, indicating a compromise on wealth taxation in the state is possible, which will alter the regulatory landscape for high-net-worth individuals and corporations.
