California Billionaire Wealth Tax Proposal Divides Democrats as Sanders Campaigns, Newsom Opposes
Updated (2 articles)
Proposal Details and Signature Requirement A health‑care union has drafted a ballot initiative imposing a one‑time 5 % tax on billionaire assets—including stocks, art, businesses, collectibles and intellectual property—to fund state health services after federal cuts; the measure must gather more than 870,000 signatures to qualify for the ballot [1].
Sanders' Campaign in Los Angeles Senator Bernie Sanders arrived in Los Angeles, warned of “massive income and wealth inequality,” urged voters to demonstrate power against the billionaire class, and cited Mark Zuckerberg and Sergey Brin as emblematic examples of the elite he targets [1].
Newsom and Advisors Oppose the Levy Governor Gavin Newsom argues the tax could plunge California’s finances into crisis and damage national competitiveness, maintaining his long‑standing resistance to state‑level wealth taxes; longtime adviser Brian Brokaw leads a political committee asserting the levy would worsen affordability, health‑care costs and school cuts rather than solve them [1].
Political Implications for 2026 Midterms UC‑Berkeley professor Eric Schickler warns that a public clash between Newsom and Sanders is “not ideal” for Democrats, though the tax’s popularity might rally voters and differentiate candidates; Republican gubernatorial hopefuls Chad Bianco and Steve Hilton claim the tax would erase jobs, while Democratic candidate Matt Mahan blames federal loopholes for inequality, noting the outcome could influence California’s congressional map and the national House balance [1].
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Timeline
Jan 2026 – A health‑care union unveils a one‑time 5 % tax on billionaire assets (stocks, art, businesses, collectibles and intellectual property) to backfill federal health‑care cuts, applying retroactively to anyone residing in California as of Jan 1, 2026 [2].
Jan 2026 – The measure must gather more than 870,000 petition signatures to qualify for the November 2026 ballot, setting a steep hurdle for supporters [2].
Jan 2026 – Peter Thiel contributes a sizable donation to a committee tied to a business group opposing the tax, highlighting high‑profile Silicon Valley resistance [2].
Jan 2026 – Tech leaders warn the tax could accelerate an exodus: Elon Musk moves Tesla operations to Austin, Texas, while Google co‑founders Larry Page and Sergey Brin shift assets to Florida, underscoring concerns about startups leaving the state [2].
Jan 2026 – Senator Bernie Sanders publicly endorses the proposal, calling it a model for other states and warning of “massive income and wealth inequality” [2][1].
Feb 2026 – Sanders campaigns in Los Angeles, urging voters to “show power against the billionaire class” and citing Mark Zuckerberg and Sergey Brin as emblematic of the elite [1].
Feb 2026 – Governor Gavin Newsom opposes the levy, warning it “could plunge California’s finances into crisis” and damage the state’s national competitiveness [1].
Feb 2026 – Newsom adviser Brian Brokaw leads a political committee against the tax, arguing it would worsen affordability, health‑care costs and school cuts rather than solve them [1].
Feb 2026 – UC‑Berkeley professor Eric Schickler warns that a public clash between Newsom and Sanders is “not ideal” for Democrats ahead of the 2026 midterms, though the tax’s popularity could rally voters [1].
Feb 2026 – Republican gubernatorial candidates Chad Bianco and Steve Hilton claim the tax would erase jobs, while Democratic candidate Matt Mahan blames federal loopholes for inequality, framing the debate as a potential swing factor in the upcoming election and congressional map [1].
Nov 2026 (planned) – If supporters meet the signature threshold, voters will decide the billionaire wealth‑tax measure, a decision poised to reshape California’s health‑care financing and influence national political dynamics [2][1].
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External resources (1 links)
- https://polisci.berkeley.edu/people/person/eric-schickler (cited 1 times)