Sanders and Newsom Clash Over Proposed California Billionaires Tax

California Governor Gavin Newsom and Senator Bernie Sanders are publicly at odds over a proposed tax on the state’s wealthiest residents, highlighting a growing rift within the Democratic party as a November ballot initiative looms. The proposal, spearheaded by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), aims to impose a one-time 5% tax on the assets of billionaires to bolster funding for health services and state programs.

A Divisive Proposal

Sanders campaigned in Los Angeles on Wednesday, February 18, 2026, rallying support for the tax, framing it as a critical step in addressing economic inequality. He criticized the “greed” and “arrogance” of the billionaire class, and condemned those who have threatened to leave the state if the tax is enacted PBS. He argued that the proposal is a test of whether the U.S. Remains a democratic society where the people hold power POLITICO.

Newsom’s Opposition

Governor Newsom, however, has voiced strong opposition, warning that the tax could destabilize state finances and diminish California’s competitive edge NBC Los Angeles. He fears the tax could trigger an exodus of wealthy individuals and businesses, ultimately harming the state’s economy AP News.

The Ballot Initiative and Signature Drive

Supporters of the tax are currently gathering signatures to qualify the “California Billionaire Tax Act” for the November ballot. Approximately 875,000 valid signatures are required NBC Los Angeles. If successful, the initiative will face a statewide vote.

Potential Economic Impact

A nonpartisan analysis by the California Legislative Analyst’s Office estimates the tax could generate tens of billions of dollars, but also acknowledges significant uncertainty. The report cautions that wealthy residents leaving the state could result in substantial losses in income tax revenue AP News. Valuing complex assets like art, private businesses, and intellectual property also presents a logistical challenge.

Public Opinion

A January poll indicated that 48% of likely voters support the initiative, even as 38% oppose it, and 14% remain undecided AP News. This suggests a closely contested battle ahead.

Opposition Funding

The proposal faces well-funded opposition from business leaders and tech titans. Google co-founder Sergey Brin is backing a political group funding competing ballot initiatives designed to invalidate the union-backed proposal AP News.