Proponents of the billionaire tax say they have enough signatures — double that — to qualify for the ballot

Proponents of the billionaire tax said Sunday they have collected nearly enough signatures to qualify the controversial proposal for the November ballot.

Opponents of the proposal say it has already pushed wealthy Californians — key to funding the state's volatile budget — to other parts of the country. Advocates, however, say the proposed tax is necessary to offset health care funding cuts that will hurt the state's most vulnerable citizens.

“The majority of Californians and billionaires recognize how sensible and necessary this proposal is – to keep emergency rooms open and save California businesses from closing,” said Suzanne Jimenez, chief of staff for the Service Employees International Union-United Healthcare Workers West, a key proponent of the effort. “A very small group of the world's most controversial billionaires tried to stop” the effort, he added, but when “our growing coalition signs these signatures, David will have won the first round against Goliath.”

The union, which represents more than 120,000 health care workers, patients and consumers, has launched an effort to fight major health care funding cuts signed by President Trump last year. The California Budget & Policy Center has estimated that as many as 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could close, and other health care services would be cut unless new funding is found.

The proposal would impose a one-time tax of up to 5% on taxpayers and trusts with assets worth more than $1 billion, excluding other assets, such as real estate. The tax can be paid within five years. Ninety percent of the revenue will fund health care programs, and the remainder will be used for food aid and education programs. The proposal would cost the state's wealthiest citizens $100 billion if a majority of voters support it.

Supporters must submit the signatures of nearly 875,000 registered voters to county election officials on June 24. They say they have collected nearly 1.6 million signatures.

Opponents of this move, which divided the liberals – Sen. Bernie Sanders (Vt) supports it while Democratic California Gov. Gavin Newsom opposes it – he said the proposal would destroy California's economy and budget, while doing nothing to address the state's financial problems.

“This wealth tax would have a negative impact on our economy, the state budget, and the cost of living for all Californians,” said Rob Lapsley, president of the bipartisan California Business Roundtable. “This measure does nothing to reduce the state's $35-billion-plus budget deficit and it does nothing to correct a decade of overspending that has led to a structural deficit. In fact, because the state relies heavily on income tax revenues, this measure could lead to lower budget revenues in the long term as it leaves the state's newly wealthy to avoid this tax on young people.”

He also pointed out that the proposal would lead to higher taxes for all Californians.

“This is everybody's tax called the billionaire tax,” Lapsley said, “and we're going to make sure Californians understand the truth about the dire consequences this plan will have.”