A proposal to impose a one-time 5 percent tax on the assets of California billionaires has qualified for the November ballot.
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The California Secretary of State’s office announced Wednesday that supporters had gathered enough signatures to place the measure before voters after months of maneuvering and opposition from influential political and business leaders.
The proposal, backed by a health care union, would levy a one-time tax on the assets of the state’s wealthiest residents.
Advocates of the measure claim the increase in revenue would help offset the effects of federal spending reductions and provide resources to prevent hospital closures and job losses. Among those backing the proposal is socialist Sen. Bernie Sanders.
Opponents, including Newsom and several Silicon Valley business leaders, believe the tax would damage California’s business environment and encourage wealthy taxpayers to relocate, reducing state revenue in the long run.
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The measure has split California’s Democratic coalition, creating divisions among labor groups and drawing significant financial involvement from technology executives and business organizations.
A prominent critic of the tax is Google co-founder Sergey Brin, who has joined other opponents in funding efforts aimed at countering the initiative and advancing alternative ballot measures.
Despite qualifying for the ballot, it may not end up with a vote.
Proponents retain the option of withdrawing the measure before a late June deadline as part of an agreement involving lawmakers and the governor. The billionaires tax is one of several competing tax-related proposals currently under discussion, including a separate union-backed tax extension, a business-supported effort to limit future tax increases and other initiatives backed by Brin and his allies.
Leaders of SEIU-UHW, the health care union sponsoring the proposal, have said they want voters to decide the issue. More recently, however, they have indicated a willingness to continue discussions as Newsom works to build opposition among labor and health care organizations.
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