California Billionaire Tax Proposal Divides Democrats

Senator Bernie Sanders supports the measure, but Governor Gavin Newsom and others have concerns.

Published on Feb. 10, 2026

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Senator Bernie Sanders, a Vermont independent, is supporting a California ballot initiative that would place a one-time 5% tax on the state's billionaires. Supporters believe the tax could fund critical public services like healthcare, while opponents argue it could drive billionaires out of the state. The proposal has divided Democrats in California, with Governor Gavin Newsom and Representative Ro Khanna expressing concerns, while the SEIU-UHW union has endorsed the measure.

Why it matters

Voters in California, one of the most Democratic states in the country, may vote in November to enact a tax on billionaires. Supporters believe such a tax could fund critical public services, but opponents argue it would drive billionaires out of California, reducing funding for programs in the long term.

The details

Sanders is supporting the proposal, which is in the process of gathering 875,000 signatures from registered voters to secure its placement on the ballot in November. If enacted, the state would place a one-time 5% tax on California billionaires. Proponents believe the tax could fund healthcare and prevent the closure of hospitals and emergency rooms, while opponents have said it would drive billionaires out of California, reducing funding for programs in the long term.

  • The ballot initiative supporters have until June 24 to gather signatures to put the measure on the November ballot.
  • A poll released last month showed that 60% of Californians initially supported the tax, but support fell to 54% when presented with opposition messaging.

The players

Bernie Sanders

A Vermont independent senator who is supporting the California billionaire tax proposal.

Gavin Newsom

The Democratic governor of California who has called the billionaire tax initiative "really damaging to the state."

Ro Khanna

A Democratic representative from California who has pushed for a compromise on the billionaire tax proposal.

Tom Steyer

A billionaire who is running for governor in California and has expressed concerns about how the billionaire tax proposal is designed.

SEIU-UHW

A union that has endorsed the California billionaire tax proposal.

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What they’re saying

“We're calling on California's billionaires to step up and pay a one-time, emergency 5% tax to prevent the collapse of California healthcare and help fund California public K-14 education and state food assistance programs. This would protect healthcare jobs and ensure working people and families can get the care they need. The tax would be paid only by Californians worth more than $1 billion — which is about 200 people who hold a combined wealth of $2 trillion.”

— SEIU-UHW (SEIU-UHW statement)

“My district is $18 trillion, nearly 1/3 of U.S. stock market in a 50 mile radius. We have 5 companies with a market cap over a trillion dollar companies. If I can stand up for a billionaire tax, this is not a hard position for 434 other members or 100 Senators.”

— Ro Khanna, Democratic Representative (X)

“If there's an opportunity to tax wealthy people to fund health care and education, I'd vote for it all day long. At the end of the day, I'm always going to come down on the side of supporting working families, and if that includes making billionaires like me pay more taxes, then so be it.”

— Tom Steyer, Billionaire and California gubernatorial candidate (Substack)

What’s next

Supporters of the tax have until June 24 to gather signatures to put the ballot measure on the November ballot in California.

The takeaway

The proposed California billionaire tax has divided Democrats, with some like Senator Sanders supporting it to fund critical public services, while others like Governor Newsom have expressed concerns about its potential unintended consequences. The outcome of this ballot measure could have significant implications for the state's budget and the ongoing debate over wealth inequality and the role of government.