California unions close in on destructive wealth tax
California unions have submitted over 1.5 million signatures to place the Billionaire Tax Act on the November ballot, a measure aiming to tax individuals with $1 billion or more in assets at 5%. The proposal, backed by major labor unions and progressive politicians, claims it will raise $100 billion over five years without prompting wealthy residents to leave. However, state analysts and economists warn the tax could lead to long-term revenue losses as billionaires relocate, harming California's innovation-driven economy.
- ▪The Service Employees International Union-United Healthcare Workers West sponsored the Billionaire Tax Act initiative, which seeks to impose a 5% tax on personal wealth exceeding $1 billion.
- ▪The measure would direct 90% of its revenue to healthcare through a newly created 'Billionaire Tax Reserve Fund,' not the state's general fund.
- ▪California's Legislative Analyst’s Office projects long-term revenue losses due to taxpayer flight, while the Tax Foundation estimates annual losses of $4.5 billion.
- ▪The tax has been endorsed by Sens. Chris Murphy and Bernie Sanders, as well as Rep. Ro Khanna and several California labor unions.
- ▪Gov. Gavin Newsom opposes the tax despite having previously promoted the idea that the wealthy should bear most of the tax burden.
Opening excerpt (first ~120 words) tap to expand
The labor union funding California’s Billionaire Tax Act initiative filed more than 1.5 million signatures on April 27, almost double the 875,000 needed to put the measure on November’s ballot. California voters are now a step closer to driving out one of the last remaining engines of economic growth in their state, which is already losing entertainment, manufacturing, and energy jobs. The ballot measure is sponsored by the Service Employees International Union-United Healthcare Workers West, which represents hospital staff mostly at nonprofit entities such as Kaiser Permanente, Sutter Health, and Dignity Health. It has also been endorsed by the American Federation of State, County and Municipal Employees California, Teamsters California, plus Sens.
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