Mass exodus fears as California billionaire tax gets enough signatures to go on ballot, backers claim

The controversial billionaire tax measure has secured enough signatures to appear on the November ballot, according to the union leading the charge.

“Supporters of the Healthcare Executive Compensation Act submitted more than one million signatures to the California Attorney General and county registrars across the state, a landmark step toward qualifying the measure for the November 2026 ballot,” the group said in a statement Sunday.

The tax — proposed by the Service Employees International Union–United Healthcare Workers West — would impose a one-time 5% levy on California residents with assets exceeding $1 billion.

The measure is opposed by many, including top Democrats like the state’s own governor Gavin Newsom, who has warned it could trigger an exodus of wealthy individuals and businesses.

“This will be defeated — there’s no question in my mind,” Newsom said earlier this year. “I’ll do what I have to do to protect the state.”

Silicon Valley figures have also pushed back, including Sergey Brin and Ron Conway, who have helped fund efforts to block the proposal and support competing ballot measures aimed at weakening it.

Several billionaires have already left California ahead of the proposal, including Larry Page, Brin, Peter Thiel, Don Hankey, Travis Kalanick and Steven Spielberg.

While the measure has qualified for the ballot, it still needs voter approval — a potential challenge as polling shows mixed views.

About half of voters support it, while 28% oppose it and 23% remain undecided. At the same time, many expressed concern about businesses leaving the state, billionaires relocating, and possible future tax increases.

National figures like Bernie Sanders have rallied support in California, arguing that billionaires have an “addiction” to wealth. The independent senator in vermont was in Los Angeles in February pushing for the wealth tax.

Supporters, including SEIU-UHW, say the tax is needed to address healthcare funding gaps tied to cuts to Medicaid and other federal programs implemented last year.

“Every signature represents a patient, a family member, a healthcare worker who is fed up,” said Zelda Aaron, a social worker at Community Hospital of San Bernardino.

“People understand that healthcare costs keep rising while executives take home millions. This measure will finally redirect those dollars where they belong – into patient care and the caregivers who deliver it.”

If approved, the measure is expected to trigger a costly political fight, with opponents backing rival initiatives to weaken it — including proposals to ban taxes on personal assets, redirect revenue to schools, and impose strict oversight rules that could invite legal challenges.

“It’s gambling a potential one-time revenue bump in exchange for massive ongoing losses, which would force cuts to schools and health care,” said Dan Newman, a spokesman for an opposition group backed in part by Conway.

Under California law, if competing measures pass, the one with the most “yes” votes prevails, a dynamic that could also confuse voters.

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