Gavin Newsom fails to stop California’s controversial billionaire tax from going to voters
Governor Gavin Newsom was unable to negotiate a compromise to keep California's proposed one‑time 5% billionaire wealth tax off the November ballot. The tax, aimed at residents with net worth over $1 billion, is backed by SEIU‑United Healthcare Workers West to address looming federal health‑care cuts. Business groups and some labor leaders warn the measure could drive away investors, while supporters argue it is needed to protect state health and social programs.
- ▪Newsom failed to reach a last‑minute deal, resulting in the billionaire tax proceeding to a voter referendum.
- ▪The tax would impose a one‑time 5% levy on individuals whose net worth exceeds $1 billion, with the revenue intended to offset federal health‑care reductions.
- ▪SEIU‑UHW offered to lower the rate to 2%, but the governor’s office rejected the proposal.
- ▪Opponents, including the California Chamber of Commerce, claim the tax could accelerate the exodus of companies and high‑income taxpayers, whereas supporters say it would fund Medi‑Cal and other essential services.
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Politics breaking Gavin Newsom fails to stop California’s controversial billionaire tax from going to voters By Josh Koehn Published June 25, 2026, 8:49 p.m. ET See more of our coverage in your search results. Add The California Post on Google Gov. Gavin Newsom failed to broker a last-minute deal to keep California’s controversial billionaire tax off the November ballot, setting up what could become one of the nation’s most expensive and politically explosive ballot fights over taxing the ultra-wealthy to cover federal health care cuts.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at California Post.
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