California’s wealthiest residents may face a one-time 5% tax on their internet price below a brand new proposal aimed toward changing billions of {dollars} in federal funding cuts to healthcare.
The measure – referred to as the “2026 Billionaire Tax Act” – seeks to counter $30 billion in potential federal funding cuts to California’s Medicaid program, with a portion of the income earmarked for public training, in response to supporters, which embody the Service Staff Worldwide Union (SEIU).
Proponents of the measure despatched a request to the California Legal professional Common’s Workplace on Oct. 21 to get approval to start amassing signatures.
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Billionaires in California may quickly face a one-time 5% tax on their internet price below a brand new proposal aimed toward changing billions of {dollars} in federal funding cuts to healthcare. (iStock / iStock)
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Supporters of the measure argue that round 200 billionaires in California maintain about $2 trillion in wealth, however the state’s different 19 million taxpayers pay a “much larger portion” of their true earnings.
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The measure would want to garner greater than 870,000 signatures by subsequent spring with the intention to be positioned on the November 2026 poll, Realtor.com reported.
If enacted, California’s wealthiest residents, together with tech executives like Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang, may face large payments.
The proposal additionally comes because the state continues to grapple with inhabitants outflows to lower-tax states corresponding to Florida.
If enacted, the measure may ship large payments to a few of California’s richest residents, together with tech executives like Mark Zuckerberg. (Tom Williams/CQ-Roll Name, Inc through Getty Photos)
Earlier this 12 months, President Donald Trump signed into regulation the One Massive Lovely Invoice Act, which incorporates about $1.2 trillion in spending cuts over a decade, largely from modifications to spending on healthcare applications.
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The Service Staff Worldwide Union didn’t instantly reply to FOX Enterprise’ request for remark.
FOX Enterprise’ Eric Revell and Kristen Altus contributed to this report.
