Source: Fortune
Summary
The Service Employees International Union Healthcare Workers West has scaled back its proposal for a one-time 5% tax on California billionaires to a 2% tax in an attempt to get Governor Gavin Newsom’s support. The original proposal, which qualified for the November ballot, aimed to generate $100 billion in revenue to counter federal cuts to healthcare and fund other programs. However, Newsom and other critics argue that the tax would harm working Californians and push the ultrawealthy to leave the state. The union’s revised proposal would need to be passed by the Legislature by June 25 to qualify for the ballot.
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The numbers tell one story. The billionaire tax proposal has sparked intense debate, with Governor Gavin Newsom and critics arguing it would harm the state’s economy. The Service Employees International Union Healthcare Workers West’s revised proposal aims to appease Newsom, but it remains to be seen if it will be enough. The tax has already divided Democrats and major labor unions, with prominent progressives like Vermont Sen. Bernie Sanders backing it. Meanwhile, Silicon Valley tech moguls have spent millions to defeat it.
The proposal’s fate hangs in the balance, with the Legislature’s June 25 deadline looming. As the battle over the billionaire tax continues, one thing is clear: the ultrawealthy are willing to spend big to avoid paying up. Sergey Brin’s $82 million donation to a political committee opposing the tax is just one example. The question is, will it be enough to sway the outcome?
Author: Evan Null
