California Billionaire Tax Faces Opposition from Newsom and Tech Leaders

California’s proposed “billionaires tax,” a ballot measure aiming to impose a 5% levy on the net worth of residents exceeding $1 billion, is sparking a fierce debate and drawing opposition from Governor Gavin Newsom and prominent figures in the tech industry. The measure, spearheaded by the Service Employees International Union – United Healthcare Workers West (SEIU-UHW), seeks to generate an estimated $100 billion in revenue, with 90% allocated to healthcare and 10% to education and food assistance .

The Battle Lines are Drawn

The proposal has ignited a clash between organized labor, progressive lawmakers, and a powerful coalition of tech executives and business leaders. Governor Newsom, who has historically resisted proposals to tax the wealthy , has vowed to oppose the ballot initiative .

Key Players and Their Positions

Proponents

• SEIU-UHW: The primary sponsor of the 2026 Billionaire Tax Act, having committed $25 million to the campaign .
• Teamsters California: Has endorsed the proposal.
• Bernie Sanders: Led pro-tax rallies in Los Angeles and San Francisco in February 2026 .
• Ro Khanna: A U.S. Representative who supports the measure, despite representing Silicon Valley .

Opponents

• Building a Better California: A political action committee funded largely by tech executives, including $20 million from Google co-founder Sergey Brin and $2 million each from former Google CEO Eric Schmidt, Stripe CEO Patrick Collison, and venture capitalists John Doerr and Michael Moritz .
• California Business Roundtable: Represents large employers and business interests and is actively campaigning against the tax .
• Golden State Promise: Funded by figures tied to Ripple, with a combined $10 million contribution from Ripple Executive Chairman Chris Larsen and Ripple Labs .
• Stop the Squeeze: Supported by Democratic donors, including San Francisco venture capitalist Ron Conway and Daniel Tierney .

Signature Gathering and Ballot Qualification

Proponents of the tax must gather 875,000 signatures by June 24 to qualify the measure for the November ballot . The SEIU-UHW claims to have already collected 25% of the required signatures. Opponents are too actively collecting signatures for competing measures, potentially creating a complex ballot for voters.

Competing Measures and Voter Confusion

Building a Better California is sponsoring multiple tax-related initiatives that could compete with the billionaire tax, potentially confusing voters. The group is offering a $15 bounty per signature, significantly higher than the typical rate .