California's proposed billionaire tax has picked up another major endorsement, adding to what Newsweek has described as one of the state's most closely watched ballot fights.
Backers said support from the California Nurses Association gives the tax measure added momentum, while Gov. Gavin Newsom has warned that the state's wealthiest residents could respond by leaving California.
What's happening?
Proposition 40, which would place a one-time 5% tax on Californians with assets above $1 billion, has been endorsed by the California Nurses Association, which represents more than 100,000 nurses and healthcare workers.
Supporters estimate the plan would apply to about 200 billionaires and bring in roughly $100 billion over five years, with a large share of the revenue going to healthcare and other public programs.
Following support from the California Democratic Party, the nurses' endorsement gives the campaign another prominent boost before the statewide general election on Nov. 3.
Cathy Kennedy, president of the California Nurses Association, said the proposal is a response to a system in which the wealthiest Americans have avoided paying their "fair share" of taxes.
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Supporters have also tied the measure to concerns about healthcare cuts, arguing that new funding is needed to keep hospitals, emergency rooms, and clinics open.
Among the measure's most visible opponents is Newsom. In a June 26 Substack post, he wrote: "You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do."
Why does it matter?
Proposition 40 has become a test of whether voters will support taxes on extreme wealth to pay for essential public services, particularly healthcare.
If the measure passes and generates as much revenue as supporters predict, it could help stabilize healthcare funding at a time when advocates say millions of residents could be at risk of losing coverage.
If it fails, opponents will likely point to the result as evidence that even in a deeply Democratic state, voters remain wary of taxes on accumulated wealth.
The proposal has also exposed divisions within the Democratic coalition. Newsweek reported that healthcare unions have rallied behind it, but other labor groups have opposed the measure or stayed neutral.
The California Medical Association has also argued that the proposal could leave healthcare funding too dependent on a volatile revenue source.
A victory in California could energize similar efforts in other states and strengthen calls for federal action aimed at ultrawealthy Americans.
What's being done?
The coalition backing Proposition 40 includes SEIU-United Healthcare Workers West, Vermont independent Sen. Bernie Sanders, California Democratic Rep. Ro Khanna, and various labor and advocacy groups.
Igor Volsky, campaign director for Tax the Greedy Billionaires, has described the measure as part of a broader fight over political power and economic inequality.
Dave Regan, who leads SEIU-United Healthcare Workers West, said the California Democratic Party's endorsement reflected broad support.
He said, "This endorsement puts to rest the idea that California democrats are not united by the billionaire tax."
Opponents are expected to pour significant money into the campaign before November 3.
A Public Policy Institute of California poll found that 54% of likely voters support the measure.
"Here and around the country, the momentum to break up billionaires' stranglehold over us all is undeniable," Volsky said.
Newsom, meanwhile, argued: "One state can't do this alone."
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