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California Billionaire Tax Proposal Divides Democrats Ahead of Midterms
Sen. Bernie Sanders champions a one-time 5% wealth tax on the state's 200 billionaires, but Gov. Gavin Newsom and others are wary.
Published on Feb. 22, 2026
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A proposal in California to tax the state's 200 billionaires with a one-time 5% wealth tax is dividing Democrats ahead of the November midterm elections. The Billionaire Tax Act, championed by Sen. Bernie Sanders, aims to raise funds for healthcare programs, public education, and food assistance. While the proposal has some support, California Gov. Gavin Newsom and others have expressed reservations, suggesting it should be a nationwide policy rather than just in California. The issue has launched a large opposition campaign funded by tech investors.
Why it matters
This proposal highlights the ongoing debate within the Democratic party about how to address wealth inequality and the role of the ultra-wealthy. It could become a key issue in the California midterm elections, potentially impacting voter turnout and party unity. The outcome could also serve as a model for other states considering similar wealth tax proposals.
The details
The Billionaire Tax Act would charge California's 200 billionaires a one-time 5% tax on their net worth as a way to fund healthcare programs, public education, and food assistance. The proposal has received support from the Service Employees International Union-United Healthcare Workers West, but faces opposition from some Democrats like Gov. Gavin Newsom who argue it should be a nationwide policy. Tech investors have also launched a large campaign to counter the measure.
- Sen. Bernie Sanders will champion the proposal at a rally in Los Angeles on Wednesday, February 22, 2026.
- The proposal needs to reach 874,641 signatures before Californians can vote on it.
The players
Sen. Bernie Sanders
The independent senator from Vermont who has long advocated for increasing taxes on the wealthy and is championing the Billionaire Tax Act in California.
Gov. Gavin Newsom
The Democratic governor of California who has expressed reservations about the Billionaire Tax Act, suggesting it should be a nationwide policy rather than just in California.
Service Employees International Union-United Healthcare Workers West
One of California's largest unions that has voiced support for the Billionaire Tax Act, arguing it is needed to prevent the collapse of the state's healthcare system.
Ron Conway
A Silicon Valley investor who has helped fund a large opposition campaign against the Billionaire Tax Act.
Daniel Tierney
An artificial intelligence investor who has also helped fund the opposition campaign against the Billionaire Tax Act.
What’s next
The proposal needs to reach 874,641 signatures before Californians can vote on it. If it makes the ballot, the outcome could serve as a model for other states considering similar wealth tax proposals.
The takeaway
This debate over the Billionaire Tax Act highlights the ongoing tensions within the Democratic party about how to address wealth inequality and the role of the ultra-wealthy. The outcome in California could have significant implications for the party's unity and policy priorities heading into the 2026 midterm elections.
