Proposal provides for a tax on wealth above US$1 billion and is supported by Bernie Sanders, but faces opposition from the governor
Officially launched, on Wednesday (18.Feb.2026), a campaign for a tax initiative on large fortunes in the state. The proposal calls for a 5% tax on the net worth of residents with more than $1 billion.
The event, which took place at the Wiltern Theater in Los Angeles, aims to raise tens of billions of dollars to offset federal health cuts made in 2025. The plan calls for 90% of revenue to go to the medical sector and the remaining 10% to food assistance and education.
The union proposed the tax measure as a way to compensate for federal cuts in healthcare sanctioned by the President of the United States, Donald Trump (Republican) in 2025. The organization argues that the resources are necessary to make up for these losses in healthcare financing.
If approved by voters in November 2026, the measure would impact around 200 billionaires. Some wealth advisors believe the number would be higher. Legislative analysts, however, warn of the risk of long-term tax losses if these taxpayers decide to leave the state.
For the project to reach the ballot in November, SEIU-UHW now needs to collect around 875 thousand signatures required by law. The union sponsoring the proposal has a history of using ballot measures as leverage in negotiations with employers and state policymakers.
SUPPORTS AND OPPOSITIONS
Independent Vermont Senator Bernie Sanders was the only elected official to speak at the meeting. In his speech, the politician defended the tax as a way for billionaires to pay their “fair plot”.
Sanders also mentioned several billionaires with ties to the state, such as Elon Musk, Mark Zuckerberg, Larry Ellison and Sergey Brin.“Starting right here in California, these billionaires will learn that we are still living in a democratic society where the people have some power.” said the senator.
has already declared opposition to the measure. Several Democrats running to succeed him as governor also said they did not support the initiative.
Business groups, such as the California Business Roundtable, and technology executives are also fighting the initiative. They argue that the tax could “destabilize the economy and raise the cost of living for everyone.”
In the union field, support is still divided. While the Teamsters endorse the proposal, other influential unions, such as the California Teachers Association, favor alternative tax measures.
