California Billionaire Wealth Tax Measure Heads to November Ballot

A proposed wealth tax on California billionaires will go before voters in November after the deadline to block it expired today. The outcome is a setback for Governor Gavin Newsom, who opposed the initiative and failed in talks with the health workers union that backed it.

The measure would impose a one-time 5% tax on residents with net worth above $1.1 billion. Supporters say the money would help fund health care services.

In response, California's wealthy are financing countermeasures that could kill the tax before it is ever collected. Opponents, including teachers' and police unions, warn that approving the initiative would drive many billionaires out of the state and cause lasting damage to the budget.