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'Vote YES on Prop 40': California Billionaire Tax Opposed by Newsom Gets Ballot Name
“In November, California voters will at last have a chance to make billionaires pay their fair share," said the coalition behind the proposal.
Jul 02, 2026
It's official: The proposed California Billionaire Tax Act, which last week was certified for November's election, has a ballot designation—Proposition 40.
"The people of California now have the opportunity to decide what kind of future they want,” Service Employees International Union-United Healthcare Workers West (SEIU-UHW) vice president Debru Carthan said on Thursday.
“Proposition 40 asks a simple question: At a time when hospitals are reducing services, working families are being squeezed, and essential services are under attack, should a few hundred billionaires contribute their fair share to protect the state that helped make their extraordinary wealth possible?" Carthan asked. "We believe Californians will answer with a resounding yes."
Drafted by SEIU-UHW, Prop 40 would impose a one-time 5% levy on people worth $1 billion or more, to be paid in annual installments of 1% over five years.
It’s official! The billionaire tax will be on the ballot as Prop 40. This November, Vote YES on Prop 40 to ensure billionaires pay their fair share to keep hospitals and ERs open. #BillionaireTaxNow
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— Billionaire Tax Now (@billionairetaxnow.bsky.social) June 30, 2026 at 1:31 PM
The bil would require the state to spend 90% of revenue from the tax on healthcare and the rest on food assistance and public education. Proponents say the tax would raise roughly $100 billion in revenue. Critics argue that it could drive wealthy residents and investment from California and stall economic growth.
Prop 40 supporters include the Teamsters union and progressive groups like the California Democratic Socialists of America (DSA) and Our Revolution, as well as individual progressives like Sen. Bernie Sanders (I-Vt.), Rep. Ro Khanna (D-Calif.), and Democratic congressional candidate Connie Chan, who is running to replace retiring longtime San Francisco Congresswoman Nancy Pelosi.
The measure is opposed by Republicans, business groups, the Democratic Party, and even some progressives, including Chan's opponent, state Sen. Scott Wiener (D-11).
Prop 40's most prominent Democratic opponent is California Gov. Gavin Newsom, whom critics accuse of trying to bamboozle voters with his recently unveiled plan for a national billionaire income tax. Some observers skeptical of the presumed 2028 presidential hopeful contend that his support for an income tax is rooted in knowledge that very rich people actually have relatively little income when compared with their investments and other assets.
Some progressive groups opposing Prop 40—including the California Teachers Association (CTA) and Planned Parenthood Affiliates of California—point out that it is a one-off tax on wealth, not income. CTA is backing a separate ballot measure, the Children’s Education and Health Care Protection Act, which would permanently extend Proposition 55, California’s existing high-income-earner tax, which is set to expire in 2030.
In response to Thursday's ballot designation, Billionaire Tax Now said in a statement that "the measure qualified for the ballot after supporters submitted more than 1.6 million signatures from Californians across the state—nearly twice the number required to qualify—making it one of the strongest citizen-led ballot qualification efforts in California history."
"Voters consistently support the billionaire tax by large, double-digit margins," the coalition continued. "For healthcare workers who have dedicated their lives to caring for patients, today’s news isn’t just welcome, it’s critical. With no other viable alternatives proposed by Gov. Newsom, the billionaire tax is the only available option to stop a cascade of hospital and clinic closures spurred by massive federal cuts in HR 1, known as President [Donald] Trump’s so-called 'Big, Beautiful Bill.'"
"In November," Billionaire Tax Now added, "California voters will at last have a chance to make billionaires pay their fair share to help prevent widespread hospital closures, through a commonsense ballot initiative that places a one-time 5% tax on the wealth of approximately 200 billionaires who reside in the Golden State."
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'Unlikely Bedfellows': Left-Leaning Groups Join Newsom-Backed Effort to Sink California Billionaire Tax
“This is not going to be, ‘Billionaires killed this wealth tax’ if it appears on the November ballot,” said Newsom's chief of staff. “It’s going to be Planned Parenthood, doctors, teachers, and labor killed it.”
Jun 17, 2026
It comes as no shock that Silicon Valley oligarchs and other plutocrats are trying to keep a proposed billionaire tax backed by California governor and presumptive Democratic presidential aspirant Gavin Newsom off November's ballot. But the participation of progressive groups as "unlikely bedfellows" in the effort to kill the wealth tax has surprised many observers.
Introduced by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), the California Billionaire Tax would impose a one-time 5% levy on people worth $1 billion or more, to be paid in annual installments of 1% over five years. Proponents say the tax would raise roughly $100 billion in revenue.
The proposal requires the state to spend 90% of revenue from the tax on healthcare and the rest on food assistance and public education. Opponents counter it could drive wealthy residents and investment from California.
Supporters of the billionaire tax have submitted more than 1.5 million signatures, far more than the roughly 875,000 valid signatures required to qualify for November's ballot. The signatures are still being verified, and the office of California Secretary of State Shirley Weber has until June 25, 2026 to determine whether the initiative qualifies.
The measure is backed by numerous progressive groups including the Teamsters union, California Democratic Socialists of America (DSA), and Our Revolution, as well as individual progressives like Sen. Bernie Sanders (I-Vt.), Rep. Ro Khanna (D-Calif.), and Democratic congressional candidate Connie Chan, who is running to replace retiring longtime San Francisco congresswoman Nancy Pelosi.
However, opponents are trying to stop the proposal from qualifying for the ballot, while preparing for a fight in the likely event that it does.
Newsom, the California Democratic Party, and a growing list of groups—including the California Teachers Association (CTA), Planned Parenthood Affiliates of California (PPAC), and the State Building and Construction Trades Council of California—are publicly opposing the tax and are urging SEIU-UHW to pull the proposal before June 25.
Republicans, the California Chamber of Commerce, and other capitalist interests oppose the billionaire tax, as do both candidates for California governor, Democrat Xavier Becerra and Republican Steve Hilton, and Chan's opponent in the San Francisco congressional race, state Sen. Scott Wiener (D-11).
Newsom said that the proposed tax "makes no sense" and would be "really damaging to the state."
CTA argues that the tax is a one-time revenue source, while California schools and healthcare programs need permanent, recurring funding. To that end, the union is backing a separate ballot measure—the Children's Education and Health Care Protection Act—which would permanently extend Proposition 55, California's existing high-income-earner tax, set to expire in 2030.
Jodi Hicks, PPAC's president, recently said that the California Billionaire Tax's "uncertain impacts on the state budget and lack of specificity on healthcare allocations will do more harm than good in the long term."
PPAC and aligned groups including California Medical Association and California Primary Care Association also support extending Prop 55.
Meanwhile, tech billionaires and Silicon Valley executives—including Google co-founder Sergey Brin, former Google CEO Eric Schmidt, PayPal and Palantir co-founder Peter Thiel, and Ripple co-founder Chris Larsen—have raised tens of millions of dollars for Building a Better California, a political action committee dedicated to defeating the proposed tax at the ballot box.
Building a Better California is also backing separate initiatives designed to weaken or nullify the billionaire tax, including a ban on retroactive wealth taxation, restrictions on how any new tax revenue can be allocated, and the imposition of new auditing requirements.
Newsom and his allies have a useful weapon to deflect claims that he's helping billionaires who are trying to defeat the proposed tax.
“This is not going to be, ‘Billionaires killed this wealth tax’ if it appears on the November ballot,” Nathan Barankin, Newsom’s chief of staff, told The New York Times Wednesday. “It’s going to be Planned Parenthood, doctors, teachers, and labor killed it.”
SEIU-UHW accused opponents of the proposed tax of “carrying water for a few of the world’s most controversial billionaires."
“Their complicity with billionaires at the expense of patient interests is no surprise,” SEIU-UHW chief of staff Suzanne Jimenez told the Times.
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Unions Decry Spanberger Veto of Collective Bargaining Bill as ‘Betrayal to Virginia's Workers’
“We believed that she was being authentic and honest with us," said one Virginia labor leader. "She just flat-out flipped."
May 15, 2026
Labor unions are feeling betrayed after Virginia's Democratic Gov. Abigail Spanberger vetoed a bill on Thursday that would have restored collective bargaining rights for half a million public sector workers.
Virginia is one of the most restrictive states in the country for public sector bargaining, a holdover from the Jim Crow era when the General Assembly and other state legislatures across the South sought to crush the power of a public workforce with many Black employees.
According to the Economic Policy Institute, Virginia has one of the largest public sector pay gaps in the country, with state and local government employees making about 27% less on average than their private-sector peers, and it is similarly stratified in other states with weak collective bargaining rights.
Spanberger, a former US representative who was elected governor this past November, made pro-union messaging central to her affordability-focused platform. She decried President Donald Trump's executive order stripping federal workers of collective bargaining rights last year and said that as governor, she'd "look forward to working with members of our General Assembly to make sure more Virginians can negotiate for the benefits and fair treatment that they earn.”
But since taking office, Spanberger's support for restoring public sector union rights has been more tepid as she's gotten an earful from fiscally conservative Right-to-Work and taxpayer advocacy groups who claimed higher salaries for public employees would drain state funds and raise the cost of services.
When a bill to immediately mandate collective bargaining rights to 500,000 workers was proposed in the Democratic-controlled General Assembly, she introduced amendments aimed at watering down the bill—making it optional for employers to recognize unions, delaying the full implementation until 2030, and introducing what unions called a "kill-switch" that would have allowed future governors to revoke collective bargaining power.
The legislature shot Spanberger's amendments down and passed the bill in its original form. On Thursday, the governor vetoed it altogether.
In her veto message, Spanberger said she wanted the bill's other collective bargaining provisions for state employees, home care workers, and higher education employees to go into effect first "in order to demonstrate the efficacy of this new system" before it was opened up to all public employees.
But the unions that advocated for the bill say Spanberger led workers on with false promises.
"This veto is a devastating betrayal to the hundreds of thousands of public employees who have spent years, and in many cases decades, fighting for a seat at the table," said Doris Crouse-Mays, the president of the Virginia AFL-CIO. "Spanberger campaigned publicly and privately on promises [of] affordability, to support working families and respect workers' rights... Instead, when presented with the opportunity to make history and deliver on those promises, she chose to side with fear, political calculation, business, and the same anti-worker arguments that have been used for generations to deny workers power in Virginia."
LaNoral Thomas, the president of the Service Employees International Union (SEIU) Virginia 512—a union which helped lead the charge to pass the bill—told the Virginia news site Dogwood that her union had "high hopes" for Spanberger when she was elected.
“We believed that she was being authentic and honest with us," Thomas said. "She just flat-out flipped. It is shocking.”
"Public employees are not a special interest. They are our neighbors. They are the educators, bus drivers, social workers, librarians, custodians, and first responders who hold our communities together," said a joint statement from Carol Bauer, president of the Virginia Education Association, and Becky Pringle, president of the National Education Association.
They emphasized that the veto also carried "a deep racial and gender impact," noting that "Virginia’s public sector bargaining ban is rooted in a Jim Crow era effort to silence Black workers at the University of Virginia Hospital who organized for fair pay and dignity." They said, "Preserving that legacy today disproportionately harms women and workers of color, who make up so much of the public-service workforce and who have the most to gain from fair wages, safer workplaces, and a real voice on the job."
Lee Saunders, the president of the American Federation of State, County and Municipal Employees (AFSCME)—the largest national union of public sector workers in the US, with more than 1.4 million members—said that Spanberger had caved to "anti-worker extremists [who] have sidelined working people while starving the public services Virginia families rely on, earning the state a reputation as one of the most anti-worker in the country."
"While the governor has broken her word," Saunders said, "AFSCME members are deeply grateful to the bill’s sponsors and the leadership of both chambers, who kept theirs. Their commitment to working people stands in stark contrast to the governor and will not be forgotten."
"Gov. Spanberger made a choice today," he added. "Working people will remember it."
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