Labor Organizers Spearheading California Billionaire Tax Measure Rebuffed By Parent Union

SACRAMENTO — One of California’s astir powerful labour unions declined to endorse a proposed authorities billionaires tax, a rustle to its backers and a motion of simmering divisions connected nan near complete nan arguable ballot question.

The executive committee for Service Employees International Union California voted Wednesday to return a neutral position connected nan tax, which will look connected nan November ballot arsenic Proposition 40. It would enforce a one-time, 5% taxation connected nan assets of billionaires who resided successful nan authorities arsenic of Jan. 1, 2026.

In a statement, nan 750,000-member national noted gross from nan “one-time taxation connection [is] dedicated 90% to healthcare,” echoing concerns from different unions opposed to nan measure. Teacher, constabulary and firefighter unions reason nan taxation would mostly use nan healthcare assemblage and fearfulness it would destabilize nan authorities fund and, on pinch it, services specified arsenic acquisition and nationalist safety.

SEIU California is simply a genitor statement of SEIU-United Healthcare Workers West, nan national that crafted nan measurement and moved to put it connected nan ballot earlier securing wide support from different labour groups.

SEIU-UHW President Dave Regan said he pushed nan taxation to backfill an estimated $100 cardinal successful cuts to healthcare and food assistance programs that California is expected to enarthrosis nether nan One Big Beautiful Bill Act signed by President Trump past year.

“Trump’s ‘Big, Ugly Bill’ slashed backing for healthcare successful California to salary for much billionaire taxation breaks. Now, millions of Californians are losing their wellness coverage, and millions much are being forced to salary skyrocketing costs,” SEIU-UHW Press Secretary Renee Saldana wrote successful a connection to The Times.

Saldana pointed to an soul canvass showing 70% of national members successful California would support nan billionaire tax, adding: “We’re assured that SEIU members will beryllium joining millions of their chap Californians and voting YES connected Prop. 40 this November to protect healthcare, support hospitals and clinics open, and guidelines pinch California moving families.”

In negotiations pinch Newsom past month, Regan offered to propulsion nan taxation from nan ballot successful speech for concessions for his union, including thief securing contracts astatine respective aesculapian accommodation astir nan state, 2 sources told The Times. Regan denies making nan demand, and said nan connection is meant to lick an impending “catastrophe successful California’s healthcare system.”

Several unions and Democratic allies, including Planned Parenthood Affiliates of California, reason nan one-time taxation is nan incorrect solution for nan cuts, which are improbable to beryllium reversed while Republicans clasp powerfulness successful Washington.

SEIU California said its members are focused connected “a multi-year run to unafraid California’s fiscal instauration pinch ongoing revenue,” including an effort to taxation ample companies that salary wages debased capable that their workers trust connected nationalist benefits.

Surrounded by members of nan SEIU California executive board, Newsom this period signed a bill punting the “Fair Share” measure to adjacent year, erstwhile a caller politician will return office.

Some labour unions and elected Democrats interest that, successful nan agelong run, nan projected billionaire taxation will wounded nan authorities fund — which raises much money from able group taxed astatine higher rates — by pushing rich | Californians to move to different states.

Some already have. Google co-founder Sergey Brin last twelvemonth moved to the Nevada broadside of Lake Tahoe to preemptively debar nan tax, and has pumped $82 cardinal into a committee fighting Proposition 40.

Newsom, a apt 2028 statesmanlike contender, has begun arguing for a national wealthiness taxation that nan rich | could not flight by moving to a caller state.

“You whitethorn not beryllium capable to prime up and move to Texas aliases Florida to shelter your income from taxation, but I committedness you that billionaires can, and do,” he wrote on Substack successful June. “The conflict belongs astatine nan national level, wherever this surgery strategy was created successful nan first place.”

SEIU California connected Wednesday besides announced “strong opposition” to Proposition 39, a projected voter ID measure; and Proposition 43, which would make it harder for section governments to raise taxes.