California's billionaire levy is gathering more than enough signatures for the November ballot
FOX Business' Gerri Willis Joins 'Varney & Co.' reporting on the growing red-state vs. blue-state divide over taxes, as new wealth taxes target billionaires, a property tax revolt spreads across the country and a wave of income tax cuts reshapes the economy
After months of campaigning for the first wealth tax of its kind in California, the union-led effort is now taking its next step.
The Service Employees International Union-United Healthcare Workers West (SEIU-UHW) said it has collected more than 1.55 million signatures, according to a press release, which is nearly double the 875,000 signature requirement – to put a one-time tax on billions of dollars on the California ballot.
The California Billionaire Tax Act will target a total of about 200 residents and will impose a one-time 5% tax on the net worth of California residents with assets over $1 billion. The tax is due in 2027, and taxpayers can spread the payments over five years, with interest, according to the Legislative Analyst's Office.
If the measure is approved by voters in November, anyone who was a California resident on Jan. 1, 2026, will owe taxes, according to the proposal. In practical terms, a resident with a net worth of $20 billion on that date will owe a one-time tax of $1 billion, payable over five years.
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Supporters argue the tax is a direct response to “cuts to Medicaid and other federal health insurance programs by the Trump administration last year.”
Attendees are happy during the speech of Sen. Bernie Sanders, Vt., during a campaign launch for the California Billionaire Tax Act in Los Angeles, Feb. 18, 2026. (Getty Images)
“Most Californians and billionaires recognize how sensible and necessary this proposal is – keeping emergency rooms open and saving California businesses from closing,” SEIU-UHW chief of staff Suzanne Jimenez said in a statement.
“A very small group of the world's most controversial billionaires has tried to prevent Californians from being able to save their emergency rooms and hospitals – but our current signature proves that top health workers will succeed in bringing this commonsense proposal to the voters,” he continued. “When our growing coalition signs these signatures, David will have won the first round against Goliath, but our health care workers and supporters will not stop until we fully protect our patients from the impending health crisis that will result from the $100 billion in cuts to California health care.”
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SEIU-UHW did not immediately respond to Fox News Digital's request for comment.
Opponents of the move have warned that the tax could kill an estimated 108,000 high-paying jobs over the next 20 years, the New York Times reported on Sunday. Democratic Gov. Gavin Newsom even acknowledged that the state's proposed wealth tax is bad for the economy, previously saying he felt confident in opposing the proposal after reports showed some of California's wealthiest residents moving money and businesses out of state, warning that the move would hurt the economy and drive away investment.
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While the Legislative Analyst's Office predicted a short-term increase in revenue, it warned of “a continuing decline in federal income tax revenue of hundreds of millions of dollars or more annually” as billionaires flee the country in response.
Some of those public figures who moved their residences or businesses to California before the Jan. tax deadline. 1 that includes Google founders Larry Page and Sergey Brin, Mark Zuckerberg of Meta, Peter Thiel, Steven Spielberg, Travis Kalanick of Uber and auto loan executive Don Hankey.
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