Dave Regan, CA union boss, pushes divisive billionaire tax

The person who may make or break California’s future isn’t Gavin Newsom or Donald Trump — however a robust union boss many worry is hell-bent on driving $1 trillion in wealth from the state.

Dave Regan, who’s been the top of the SEIU-United Healthcare Employees West since 2011, needs billionaires to pay 5% of their wealth to the the state.

However the widely-panned tax already has among the wealthiest Californians — dealing with staggering tax payments as excessive as $12 billion — critically contemplating packing their luggage for cheaper states.

The proposed tax, which wants 874,641 signatures to land on the November poll, would impose a one-time, 5% tax on the whole property of roughly 200 billionaires in California.

Based on proponents, the tax would elevate as much as $100 billion in tax income over 5 years

Whereas supporters declare the one-off tax would elevate $100 billion over about 5 years, it’s additionally extensively predicted to drive an exodus of entrepreneurs answerable for tens of 1000’s of jobs and tons of of thousands and thousands in tax income.

Regan has a popularity as a bare-knuckled operator identified for pushing statewide poll measures as political leverage — and even Newsom hinted at frustration along with his techniques final yr.

“We’ve got one person that represents one labor union within the state of California that has not collected one signature that’s contemplating placing on the poll, after he collects signatures, a wealth tax that the overwhelming majority of labor opposes,” Newsom griped in December on the New York Instances Dealbook convention, talking of the billionaire tax.

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It’s not Regan’s first rodeo pushing a divisive voter initiative — a tactic he as soon as known as the “finest cut price in politics.”

His progressive union has led the cost on vexing poll questions like whether or not to control the kidney dialysis business — which California voters rejected thrice in a row —together with others, like a $15 minimal wage proposal in 2015 that it pulled after legislators provided their very own plan to boost wages.

Dialysis companies and their consultants had been pressured to spend over $110 million to defeat simply one of many union’s poll questions. And the labor group claims credit score for enhancing wages, increasing Medicaid and enhancing chapter protections on the poll field.

All advised, the union representing 120,000 largely healthcare employees has spent $75 million on 45 initiatives since 2012 — nearly all of which had been both rejected or tossed out, in accordance with The Data.

The union denied that the controversial billionaire tax is a bid for political leverage, quite a method to make up for the state healthcare and teaching programs which have been lower by the Trump administration. 

“The marketing campaign is seeing broad assist from voters for a one-time, 5% tax on billionaires to shut the hole on federal healthcare cuts in HR1. Voters may have the possibility to vote Sure on this poll measure in November,” stated Nathan Selzer, spokesperson for SEIU-UHW.

“There isn’t any different viable resolution proper now – inside the state price range or in any other case – to fill the funding gaps and chaos created by HR1,” he added, referring to Trump’s so-called Huge Lovely Invoice that lower healthcare funding.

Regan declined repeated interview requests. 

“He’s an organizer. He’s not a giant, flashy character,” Jim Ross, a longtime California political marketing consultant. 

Regan, who led one other SEIU chapter in Ohio, West Virginia and Kentucky earlier than touchdown in California, has ruffled feathers even inside the labor motion. 

Regan was put in SEIU-UHW president after a contentious takeover that concerned firing “dozens of staffers” and sidelining greater than 200 elected stewards that he deemed disloyal, in accordance with Payday Report.  

Previous allegations of misconduct by Regan resurfaced throughout a 2023 Senate Judiciary Committee affirmation course of, years after a California lawsuit accusing union officers of widespread misconduct led to a confidential settlement.

The lawsuit, filed by former union staffer Mindy Sturge, described a poisonous office tradition involving alcohol, sexual harassment and misconduct by senior leaders, together with Regan.

Different allegations concerned Regan being intoxicated at occasions and exhibiting up drunk to an October 2017 coaching the place he “requested ladies if he may odor their panties,” in accordance with the lawsuit.

This was an 8-year-old lawsuit that was settled. Dave Regan was by no means a defendant within the swimsuit,” Selzer stated.

The union claims it’s racking up main assist for the billionaire tax — as out-of-state allies like lefty Sen. Bernie Sanders stump in favor of the plan.

“The assist from labor, neighborhood allies, and voters round this initiative has been overwhelmingly optimistic. The vast majority of endorsements shall be deliberately introduced as soon as signature gathering has been accomplished,” Selzer stated. “We’ve got over 100 endorsements already and anticipate tons of extra — most of which shall be rolled out between April and November.”

However critics say it’s already butchered the golden goose by driving as a lot as $1 trillion in wealth out of California — crippling future tax revenues.

The unbiased state Legislative Analyst wrote that the tax may elevate tens of billions in income — however lead to an ongoing income lack of “tons of of thousands and thousands of {dollars} or extra per yr.” 

Billionaires together with enterprise capitalist Peter Thiel and Google co-founders Sergey Brin and Larry Web page have taken steps to maneuver property out of California after the tax was proposed. 

Brin, who may very well be hit with a $12 billion invoice if the billionaire tax measure passes, gave $20 million to a bunch known as Constructing a Higher California that’s against the tax, per studies.

Thiel, who may very well be on the hook for $1 billion in California taxes, moved an workplace for his agency Thiel Capital to Miami final yr in what was seen as a transfer to dodge the tax.

Newsom and different mainstream Democrats have distanced themselves from the billionaire tax, saying it goes too far. 

“It’s actually only one rogue man on an island attempting to steer cash to his particular curiosity on the expense of everybody else,” stated a supply conversant in the marketing campaign.