Supporters rally for the California Billionaire Tax in Los Angeles on February 18, 2026 in Los Angeles, CA.
'Unlikely Bedfellows': Left-Leaning Groups Join Newsom-Backed Effort to Sink California Billionaire Tax
“This is not going to be, ‘Billionaires killed this wealth tax’ if it appears on the November ballot,” said Newsom's chief of staff. “It’s going to be Planned Parenthood, doctors, teachers, and labor killed it.”
It comes as no shock that Silicon Valley oligarchs and other plutocrats are trying to keep a proposed billionaire tax backed by California governor and presumptive Democratic presidential aspirant Gavin Newsom off November's ballot. But the participation of progressive groups as "unlikely bedfellows" in the effort to kill the wealth tax has surprised many observers.
Introduced by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), the California Billionaire Tax would impose a one-time 5% levy on people worth $1 billion or more, to be paid in annual installments of 1% over five years. Proponents say the tax would raise roughly $100 billion in revenue.
The proposal requires the state to spend 90% of revenue from the tax on healthcare and the rest on food assistance and public education. Opponents counter it could drive wealthy residents and investment from California.
Supporters of the billionaire tax have submitted more than 1.5 million signatures, far more than the roughly 875,000 valid signatures required to qualify for November's ballot. The signatures are still being verified, and the office of California Secretary of State Shirley Weber has until June 25, 2026 to determine whether the initiative qualifies.
The measure is backed by numerous progressive groups including the Teamsters union, California Democratic Socialists of America (DSA), and Our Revolution, as well as individual progressives like Sen. Bernie Sanders (I-Vt.), Rep. Ro Khanna (D-Calif.), and Democratic congressional candidate Connie Chan, who is running to replace retiring longtime San Francisco congresswoman Nancy Pelosi.
However, opponents are trying to stop the proposal from qualifying for the ballot, while preparing for a fight in the likely event that it does.
Newsom, the California Democratic Party, and a growing list of groups—including the California Teachers Association (CTA), Planned Parenthood Affiliates of California (PPAC), and the State Building and Construction Trades Council of California—are publicly opposing the tax and are urging SEIU-UHW to pull the proposal before June 25.
Republicans, the California Chamber of Commerce, and other capitalist interests oppose the billionaire tax, as do both candidates for California governor, Democrat Xavier Becerra and Republican Steve Hilton, and Chan's opponent in the San Francisco congressional race, state Sen. Scott Wiener (D-11).
Newsom said that the proposed tax "makes no sense" and would be "really damaging to the state."
CTA argues that the tax is a one-time revenue source, while California schools and healthcare programs need permanent, recurring funding. To that end, the union is backing a separate ballot measure—the Children's Education and Health Care Protection Act—which would permanently extend Proposition 55, California's existing high-income-earner tax, set to expire in 2030.
Jodi Hicks, PPAC's president, recently said that the California Billionaire Tax's "uncertain impacts on the state budget and lack of specificity on healthcare allocations will do more harm than good in the long term."
PPAC and aligned groups including California Medical Association and California Primary Care Association also support extending Prop 55.
Meanwhile, tech billionaires and Silicon Valley executives—including Google co-founder Sergey Brin, former Google CEO Eric Schmidt, PayPal and Palantir co-founder Peter Thiel, and Ripple co-founder Chris Larsen—have raised tens of millions of dollars for Building a Better California, a political action committee dedicated to defeating the proposed tax at the ballot box.
Building a Better California is also backing separate initiatives designed to weaken or nullify the billionaire tax, including a ban on retroactive wealth taxation, restrictions on how any new tax revenue can be allocated, and the imposition of new auditing requirements.
Newsom and his allies have a useful weapon to deflect claims that he's helping billionaires who are trying to defeat the proposed tax.
“This is not going to be, ‘Billionaires killed this wealth tax’ if it appears on the November ballot,” Nathan Barankin, Newsom’s chief of staff, told The New York Times Wednesday. “It’s going to be Planned Parenthood, doctors, teachers, and labor killed it.”
SEIU-UHW accused opponents of the proposed tax of “carrying water for a few of the world’s most controversial billionaires."
“Their complicity with billionaires at the expense of patient interests is no surprise,” SEIU-UHW chief of staff Suzanne Jimenez told the Times.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
It comes as no shock that Silicon Valley oligarchs and other plutocrats are trying to keep a proposed billionaire tax backed by California governor and presumptive Democratic presidential aspirant Gavin Newsom off November's ballot. But the participation of progressive groups as "unlikely bedfellows" in the effort to kill the wealth tax has surprised many observers.
Introduced by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), the California Billionaire Tax would impose a one-time 5% levy on people worth $1 billion or more, to be paid in annual installments of 1% over five years. Proponents say the tax would raise roughly $100 billion in revenue.
The proposal requires the state to spend 90% of revenue from the tax on healthcare and the rest on food assistance and public education. Opponents counter it could drive wealthy residents and investment from California.
Supporters of the billionaire tax have submitted more than 1.5 million signatures, far more than the roughly 875,000 valid signatures required to qualify for November's ballot. The signatures are still being verified, and the office of California Secretary of State Shirley Weber has until June 25, 2026 to determine whether the initiative qualifies.
The measure is backed by numerous progressive groups including the Teamsters union, California Democratic Socialists of America (DSA), and Our Revolution, as well as individual progressives like Sen. Bernie Sanders (I-Vt.), Rep. Ro Khanna (D-Calif.), and Democratic congressional candidate Connie Chan, who is running to replace retiring longtime San Francisco congresswoman Nancy Pelosi.
However, opponents are trying to stop the proposal from qualifying for the ballot, while preparing for a fight in the likely event that it does.
Newsom, the California Democratic Party, and a growing list of groups—including the California Teachers Association (CTA), Planned Parenthood Affiliates of California (PPAC), and the State Building and Construction Trades Council of California—are publicly opposing the tax and are urging SEIU-UHW to pull the proposal before June 25.
Republicans, the California Chamber of Commerce, and other capitalist interests oppose the billionaire tax, as do both candidates for California governor, Democrat Xavier Becerra and Republican Steve Hilton, and Chan's opponent in the San Francisco congressional race, state Sen. Scott Wiener (D-11).
Newsom said that the proposed tax "makes no sense" and would be "really damaging to the state."
CTA argues that the tax is a one-time revenue source, while California schools and healthcare programs need permanent, recurring funding. To that end, the union is backing a separate ballot measure—the Children's Education and Health Care Protection Act—which would permanently extend Proposition 55, California's existing high-income-earner tax, set to expire in 2030.
Jodi Hicks, PPAC's president, recently said that the California Billionaire Tax's "uncertain impacts on the state budget and lack of specificity on healthcare allocations will do more harm than good in the long term."
PPAC and aligned groups including California Medical Association and California Primary Care Association also support extending Prop 55.
Meanwhile, tech billionaires and Silicon Valley executives—including Google co-founder Sergey Brin, former Google CEO Eric Schmidt, PayPal and Palantir co-founder Peter Thiel, and Ripple co-founder Chris Larsen—have raised tens of millions of dollars for Building a Better California, a political action committee dedicated to defeating the proposed tax at the ballot box.
Building a Better California is also backing separate initiatives designed to weaken or nullify the billionaire tax, including a ban on retroactive wealth taxation, restrictions on how any new tax revenue can be allocated, and the imposition of new auditing requirements.
Newsom and his allies have a useful weapon to deflect claims that he's helping billionaires who are trying to defeat the proposed tax.
“This is not going to be, ‘Billionaires killed this wealth tax’ if it appears on the November ballot,” Nathan Barankin, Newsom’s chief of staff, told The New York Times Wednesday. “It’s going to be Planned Parenthood, doctors, teachers, and labor killed it.”
SEIU-UHW accused opponents of the proposed tax of “carrying water for a few of the world’s most controversial billionaires."
“Their complicity with billionaires at the expense of patient interests is no surprise,” SEIU-UHW chief of staff Suzanne Jimenez told the Times.
- Running for California Governor, Tom Steyer Says Billionaires Like Him ‘Should Pay More Taxes’ ›
- Gavin Newsom Wants a 'Big Tent Party,' But Opposes Wealth Tax Supported by Large Majority of Americans ›
- Newsom Ripped as Billionaire 'Errand Boy' for Opposing Wealth Tax on California Plutocrats ›
- Khanna Hits Back as Silicon Valley Oligarchs Threaten Primary Challenge Over California Billionaires Tax ›
It comes as no shock that Silicon Valley oligarchs and other plutocrats are trying to keep a proposed billionaire tax backed by California governor and presumptive Democratic presidential aspirant Gavin Newsom off November's ballot. But the participation of progressive groups as "unlikely bedfellows" in the effort to kill the wealth tax has surprised many observers.
Introduced by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), the California Billionaire Tax would impose a one-time 5% levy on people worth $1 billion or more, to be paid in annual installments of 1% over five years. Proponents say the tax would raise roughly $100 billion in revenue.
The proposal requires the state to spend 90% of revenue from the tax on healthcare and the rest on food assistance and public education. Opponents counter it could drive wealthy residents and investment from California.
Supporters of the billionaire tax have submitted more than 1.5 million signatures, far more than the roughly 875,000 valid signatures required to qualify for November's ballot. The signatures are still being verified, and the office of California Secretary of State Shirley Weber has until June 25, 2026 to determine whether the initiative qualifies.
The measure is backed by numerous progressive groups including the Teamsters union, California Democratic Socialists of America (DSA), and Our Revolution, as well as individual progressives like Sen. Bernie Sanders (I-Vt.), Rep. Ro Khanna (D-Calif.), and Democratic congressional candidate Connie Chan, who is running to replace retiring longtime San Francisco congresswoman Nancy Pelosi.
However, opponents are trying to stop the proposal from qualifying for the ballot, while preparing for a fight in the likely event that it does.
Newsom, the California Democratic Party, and a growing list of groups—including the California Teachers Association (CTA), Planned Parenthood Affiliates of California (PPAC), and the State Building and Construction Trades Council of California—are publicly opposing the tax and are urging SEIU-UHW to pull the proposal before June 25.
Republicans, the California Chamber of Commerce, and other capitalist interests oppose the billionaire tax, as do both candidates for California governor, Democrat Xavier Becerra and Republican Steve Hilton, and Chan's opponent in the San Francisco congressional race, state Sen. Scott Wiener (D-11).
Newsom said that the proposed tax "makes no sense" and would be "really damaging to the state."
CTA argues that the tax is a one-time revenue source, while California schools and healthcare programs need permanent, recurring funding. To that end, the union is backing a separate ballot measure—the Children's Education and Health Care Protection Act—which would permanently extend Proposition 55, California's existing high-income-earner tax, set to expire in 2030.
Jodi Hicks, PPAC's president, recently said that the California Billionaire Tax's "uncertain impacts on the state budget and lack of specificity on healthcare allocations will do more harm than good in the long term."
PPAC and aligned groups including California Medical Association and California Primary Care Association also support extending Prop 55.
Meanwhile, tech billionaires and Silicon Valley executives—including Google co-founder Sergey Brin, former Google CEO Eric Schmidt, PayPal and Palantir co-founder Peter Thiel, and Ripple co-founder Chris Larsen—have raised tens of millions of dollars for Building a Better California, a political action committee dedicated to defeating the proposed tax at the ballot box.
Building a Better California is also backing separate initiatives designed to weaken or nullify the billionaire tax, including a ban on retroactive wealth taxation, restrictions on how any new tax revenue can be allocated, and the imposition of new auditing requirements.
Newsom and his allies have a useful weapon to deflect claims that he's helping billionaires who are trying to defeat the proposed tax.
“This is not going to be, ‘Billionaires killed this wealth tax’ if it appears on the November ballot,” Nathan Barankin, Newsom’s chief of staff, told The New York Times Wednesday. “It’s going to be Planned Parenthood, doctors, teachers, and labor killed it.”
SEIU-UHW accused opponents of the proposed tax of “carrying water for a few of the world’s most controversial billionaires."
“Their complicity with billionaires at the expense of patient interests is no surprise,” SEIU-UHW chief of staff Suzanne Jimenez told the Times.
- Running for California Governor, Tom Steyer Says Billionaires Like Him ‘Should Pay More Taxes’ ›
- Gavin Newsom Wants a 'Big Tent Party,' But Opposes Wealth Tax Supported by Large Majority of Americans ›
- Newsom Ripped as Billionaire 'Errand Boy' for Opposing Wealth Tax on California Plutocrats ›
- Khanna Hits Back as Silicon Valley Oligarchs Threaten Primary Challenge Over California Billionaires Tax ›