Sen. Bernie Sanders will formally begin campaigning next week for a new tax on billionaires to appear on California’s November ballot.
Billionaire Tax Proposal Gains Momentum
The proposal would impose a one-time 5% tax on the assets of the wealthiest residents of California. Sanders stated the tax is critical to offsetting federal cuts to healthcare enacted during the Trump administration.
According to a statement, the initiative aims to prevent over 3 million working-class Californians from losing healthcare coverage and to assist avoid the closure of hospitals and emergency rooms. Sanders argued that it “should be common sense that the billionaires pay just slightly more” to preserve access to medical care.
The senator will appear February 18 at the Wiltern in Los Angeles with musical acts to launch the campaign. The tax proposal was set forward by the Service Employees International Union-United Healthcare Workers West.
Signature Gathering Underway
Supporters of the tax must gather nearly 875,000 registered voter signatures by June 24 to qualify the measure for the ballot. Signature collection began in January.
Proponents argue the tax is necessary to address federal healthcare funding cuts, while opponents warn it could stifle innovation and lead to wealthy individuals leaving the state. More than 200 billionaires in California would be affected if the proposal passes.
Notably, PayPal co-founder Peter Thiel and venture capitalist David Sacks, both supporters of President Trump, have already left California.
Democratic Divisions
The proposal has created divisions within the Democratic party. In addition to Gov. Newsom and San Jose Mayor Matt Mahan, a dozen candidates are running to replace the termed-out governor in November, and also oppose the proposal.
Frequently Asked Questions
What is the purpose of the proposed tax?
The proposed tax is intended to backfill federal funding cuts to healthcare in California, preventing over 3 million working-class Californians from losing coverage and helping to prevent hospital closures.
How many signatures are needed to qualify the measure for the ballot?
Nearly 875,000 registered voter signatures must be collected and submitted to county elections officials by June 24 for the measure to qualify for the November ballot.
Who opposes the proposed tax?
Opponents of the tax include Gov. Gavin Newsom, San Jose Mayor Matt Mahan, and others who warn it could harm innovation and prompt wealthy individuals to leave the state.
As this proposal moves forward, what role will public opinion and the actions of California’s wealthiest residents play in its ultimate fate?
