California Files 5% Wealth Tax Initiative

A coalition led by SEIU-United Healthcare Workers West has filed a 2026 ballot initiative proposing a one-time 5% wealth tax on California residents with more than $1 billion in net worth, targeting roughly 180–200 billionaires. Backers, including economists Emmanuel Saez, Brian Galle and Darien Shanske and public figures such as Robert Reich, say the levy (about $50 million per $1 billion, payable over five years) could raise roughly $100 billion. Ninety percent of the revenue would be earmarked for Medi‑Cal to backfill recent federal Medicaid cuts, with about 10% for K‑12 education. Analysts cited by proponents warn the federal cuts could total tens of billions a year and put millions at risk of losing coverage. The campaign must collect roughly 870,000 valid signatures to qualify for the November 2026 ballot and faces political and legal challenges from opponents.