A proposal to tax California billionaires to fund healthcare tentatively qualified for the Nov. 3 ballot after the secretary of state's office declared enough valid signatures were submitted on Wednesday.
In April, supporters submitted nearly 1.6 million signatures, roughly double the number needed to qualify, and the initiative will officially qualify for the Nov. 3 ballot on June 25 unless the proponents withdraw it beforehand.
The measure would impose a one-time tax of up to 5% on taxpayers and trusts with assets valued at more than $1 billion, with some exceptions such as property; the levy could be paid over five years, with 90% of revenue funding healthcare programs and the remainder going to food assistance and education programs.
The Service Employees International Union-United Healthcare Workers West and other supporters said the proposal is crucial to compensate for federal healthcare funding cuts approved by President Trump and the Republican-controlled Congress that will harm millions of the state's most vulnerable residents.
Opponents say the proposal is an ineffective attempt to address the long-term effects of the healthcare cuts and would destroy California's economy and budget. Tech executives, venture capitalists and business leaders donated roughly $118 million to a nonprofit called Building a Better California, according to data on the secretary of state's website, with most funding coming from Sergey Brin, who has given more than $82 million.
PayPal and Palantir co-founder Peter Thiel contributed $3 million to the California Business Roundtable and former Google Chief Executive Eric Schmidt donated $1 million, while a December letter from the state legislative analyst's office said California would probably collect tens of billions from the tax but could also lose other tax revenue and that it is tough to predict the exact amount because of factors such as fluctuating stock prices.
The proposal has already triggered a fierce debate. Gov. Gavin Newsom spoke out against the billionaire tax, expressing fears that billionaires would move out of the state, while Rep. Ro Khanna and Sen. Bernie Sanders have backed a billionaire tax; the article also notes recent moves and plans by wealthy residents, including filmmaker Steven Spielberg moving to Manhattan and Facebook founder Mark Zuckerberg eyeing property in South Florida, and that on Dec. 31 venture capitalist David Sacks announced he was opening an office in Austin, Texas, the same day Thiel publicized his firm had opened a new office in Miami.