California's billionaire tax proposal is on track to qualify for the November ballot

Added: 2026-05-05

[00:00:00]Supporters of the proposed tax on California billionaires say they've gathered enough signatures for it to qualify for the November ballot.

[00:00:08]>> And it's setting the stage for what will be one of the most expensive ballot measures this year and battles this year. ABC 7 Eyewitness News political reporter Monica Madden is here with this new development. Monica. Dan and Kristen, supporters announced in an LA rally today that they have more than 1.5 million Californians signing on to the idea of a wealth tax. And although the campaign is really just getting started, one opposition group tells me it's ready to deploy an eight-figure budget to persuade Californians otherwise.

[00:00:36]It is this David versus Goliath battle.

[00:00:39]David has just won the first round.

[00:00:43]Supporters of the California billionaire tax say they've cleared a major hurdle in putting the proposal before voters.

[00:00:49]We are one step closer to the ballot and to keep the most important thing, health care, hospitals, clinics, and emergency rooms funded and opened for our California families. In a Los Angeles RALLY MONDAY, CUT BACK! FIGHT BACK!

[00:01:06]LABOR LEADERS ANNOUNCED THEY have nearly twice the number of signatures needed to qualify.

[00:01:11]>> We will continue to do everything in our power to make sure that California billionaires pay their fair share to keep our hospitals open. As written and if approved, the measure would impose a one-time 5% tax on residents with at least $1 billion in assets, things like stocks and bonds, real estate, collectibles, and even cryptocurrency.

[00:01:31]>> How do you define the full stock of someone's wealth?

[00:01:34]>> Opponents say it'll be hard to measure and collect.

[00:01:37]>> These types of taxes have been tried across Europe. They were quite popular several decades ago, and countries have systematically repealed them because they don't meet the goals. Points voters can expect to be hammered with by opposition campaigns. It might be a concept that they're in favor of, but if the if all the details aren't there, then they're they're going to likely vote no. Roger Salazar is a veteran of California propositions and is against the wealth tax.

[00:02:02]>> And you're going to get businesses leaving California. And if those businesses leave California, thousands of good paying jobs disappear, paychecks shrink, and communities suffer. An analysis by Stanford's Hoover Institution estimates the proposal could cost the state $25 billion in tax revenue and would collect about 40% of what supporters hope it'll generate.

[00:02:21]About half of voters say they'd vote in favor of the measure, according to a March UC Berkeley poll.

[00:02:27]And this issue is already becoming a litmus test for California's candidates running for governor and even other down-ballot races. The state's current leader, Governor Gavin Newsom, has publicly opposed the billionaire tax.

[00:02:39]Now, the next step is for the Secretary of State's office to verify the signatures. Dan,