Coalition pressures Gavin Newsom to again 2% billionaire tax

Backers of California’s controversial billionaire tax initiative on Thursday publicly challenged Gov. Gavin Newsom to help a scaled-back model of the proposal — arguing a one-time levy on the state’s wealthiest residents is required to stop what they known as a looming health-care disaster.

In an open letter to the governor, the Billionaire Tax Now Coalition — sponsored by labor union Service Staff Worldwide Union-United Healthcare Staff West — provided to scale back the proposed tax from 5% to 2% if Newsom agrees to help the measure as a short lived answer to offset deep federal healthcare cuts.

“We’re ready to affix you in enacting a 2% model of our initiative as a substitute of the unique 5% model,” the coalition wrote.

The proposal formally certified for California’s November poll this week after state election officers verified sufficient petition signatures.

As initially written, the initiative would impose a one-time 5% tax on California residents whose internet price exceeded $1 billion as of Jan. 1, 2026. Supporters estimate the measure would generate $100 billion from roughly 200 billionaires, with 90% of the income devoted to healthcare spending and the rest directed to training and meals help applications.

The coalition, led by SEIU-UHW, says the tax is important to backfill health-care funding losses stemming from President Trump’s tax and spending bundle, often known as the “One Huge Stunning Invoice Act.”

The California Division of Well being Care Providers has projected the federal modifications may value the state roughly $30 billion yearly. About 14 million Californians depend on Medi-Cal.

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Within the letter, the coalition mentioned a diminished 2% levy would function a two-year bridge whereas California develops a longer-term funding technique. The group argued the tax may forestall 150,000 health-care job losses, avert hospital and clinic closures and protect protection for 3.2 million Californians. It additionally warned that greater than 20 million residents may face increased premiums, deductibles and co-pays if lawmakers fail to behave.

“When hospitals are closed and prices are shifted to working households, sufferers die,” the coalition wrote. “These aren’t abstractions; they’re preventable deaths.”

Newsom has constantly opposed tax will increase throughout his tenure and has warned that increased taxes may drive rich residents and companies out of California.

Opponents of the measure, together with Silicon Valley donors and enterprise teams, argue a wealth tax would speed up the departure of high-net-worth people from a state already closely reliant on prime earners for tax income.

The initiative’s sponsors have till June 25 to withdraw the measure from the poll.