Gavin Newsom Pressures Union to Withdraw California Billionaire Tax

Governor Gavin Newsom is leading a pressure campaign to convince the healthcare union SEIU-UHW to withdraw a proposed billionaire tax before a June 25 certification deadline. The ballot measure would impose a one-time 5% tax on the net worth of residents with assets exceeding $1 billion, potentially raising $100 billion to fund healthcare, education, and food assistance. SEIU-UHW has already submitted 1.55 million signatures, far exceeding the 875,000 required for the measure to qualify for the November election.

Newsom has formed a coalition of opponents that includes tech billionaires such as Sergey Brin and Peter Thiel, as well as progressive organizations like Planned Parenthood Affiliates of California and the California Teachers Association. He argues the tax would hinder innovation and trigger an exodus of wealthy residents, which would ultimately deprive the state of critical income tax revenue. As an alternative, Newsom is advocating for a federal wealth tax.

While the measure has support from U.S. Representative Ro Khanna, Teamsters California, and the California Democratic Socialists of America, SEIU-UHW leadership remains open to solutions that prevent a healthcare crisis. Because the proposal is a ballot initiative, Newsom cannot veto the measure if it successfully qualifies for the election.