California labor union SEIU-UHW has launched a signature drive for the Billionaire Tax Act, a one-time levy up to 5% on individuals and trusts with assets over $1 billion, applying to residents as of Jan. 1 with payments due in 2027. Backers estimate roughly $100 billion—90% for health care—while Gov. Gavin Newsom and polls showing under 50% support warn of wealthy departures and revenue risks.
Key Points
- 1Imposes a one-time up to 5% tax on individuals and trusts over $1 billion, payable 2027.
- 2Aims to raise about $100 billion, allocating 90% to health care amid federal funding cuts.
- 3Could prompt wealthy departures and reduce annual income-tax base, risking longer-term general fund revenues.
Scoring Rationale
Credible, timely state fiscal proposal with significant short-term revenue potential, limited by possible billionaire departures and uncertain long-term effects.
Sources
Public references used for this report.
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