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Union Behind California Billionaire Tax Offers to Reduce the Rate
The New York Times • • nation
Key Points:
- The union behind a proposed California ballot measure to impose a one-time 5% tax on billionaires has offered to reduce the rate to 2% in negotiations with Governor Gavin Newsom.
- Governor Newsom remains opposed to any state-level wealth tax, arguing it would drive entrepreneurs away and harm California's tech-driven economy.
- Newsom's office stated that lowering the tax rate does not address fundamental flaws in the measure, which they say would defund essential public services like education, healthcare, and public safety.
- The Service Employees International Union-United Healthcare Workers West initiated the wealth tax proposal to counteract federal healthcare funding cuts implemented under the Trump administration.
- The initiative has gathered enough signatures to appear on the November ballot, despite ongoing negotiations with state leadership.
