California Billionaire Tax Measure Moves to November Ballot After Negotiations Collapse

California voters will decide in November whether to impose a one-time 5% tax on billionaires after negotiations to keep the measure off the ballot expired Thursday without an agreement between Governor Gavin Newsom and the initiative’s backers.

The proposed measure would require a one-time 5% levy on the net worth of California residents whose wealth exceeded $1 billion as of January 1, 2026.

The Service Employees International Union-United Healthcare Workers West, which supports the initiative, had previously offered to withdraw it if Governor Newsom agreed to champion a scaled-down 2% billionaire tax through the state legislature. However, the governor rejected that proposal.

Supporters assert the tax would generate billions for healthcare, education, food assistance and other public programs while impacting only a small fraction of California’s wealthiest residents.

Governor Newsom and business groups contend the measure would prompt high-income individuals to leave the state, undermining its tax base and exacerbating future budget shortfalls.

Prominent technology billionaires including Google co-founder Sergey Brin, venture capitalist Peter Thiel, and cryptocurrency entrepreneur Chris Larsen have funded campaigns opposing the initiative. Opponents are also backing separate ballot measures designed to restrict California’s ability to implement future taxes, positioning this as one of the state’s most expensive ballot contests.

California has long depended on high-income taxpayers for a substantial portion of its revenue, making wealth tax debates especially critical amid recurring budget deficits and fiscal pressures.