Supporters of a billionaire tax said Sunday they have collected nearly twice the signatures needed to qualify the controversial proposal for the November ballot.
Opponents of the proposal argue that it would drive already wealthy Californians — who are crucial to funding the state’s shaky budget — to other parts of the country. However, advocates say the proposed tax is critical to offsetting federal health care funding cuts that would hurt the state’s most vulnerable residents.
Suzanne Jimenez, chief of staff of the Service Employees International Union-United Healthcare Workers West, a lead proponent of the effort, said, “Most Californians and most billionaires recognize how fair and necessary this proposal is – to keep emergency rooms open and keep California businesses from closing.” He said, “A very small group of the most controversial billionaires on the planet tried to stop this effort”, but when “our growing coalition files 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, launched the effort to combat the massive health care funding cuts that President Trump signed last year. The California Budget and Policy Center estimates that at least 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could close, and other health services would be reduced unless new funding is found.
The proposal would impose a flat tax of up to 5% on taxpayers and trusts with assets worth more than $1 billion, with some exclusions such as estates. The levy can be paid over five years. Ninety percent of the revenue would finance health care programs, and the remaining funds would be spent on food aid and education programs. If a majority of voters support the proposal, it would cost the state’s wealthiest residents nearly $100 billion.
Supporters must submit approximately 875,000 registered voter signatures to county elections officials by June 24. He says he has collected around 16 lakh signatures.
Opponents of the measure, which has divided liberals – Sen. Bernie Sanders (I-VT) supports it, while Democratic California Gov. Gavin Newsom opposes it – said the proposal would destroy California’s economy and budget, while doing nothing to address the state’s underlying fiscal issues.
“This wealth tax will have a devastating 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 more than $35 billion budget deficit and does nothing to address the decade of overspending that led to the structural deficit. In fact, because the state relies so heavily on high-income tax revenues, this measure could reduce budget revenues in the long term as highly mobile wealthy individuals leave the state to avoid this new tax.”
He also argued that the proposal could result in higher taxes for all Californians.
“This is a tax on everyone called the billionaires tax,” Lapsley said, “and we will make sure that Californians understand the truth of the devastating consequences of this initiative.”
