As Senator Bernie Sanders traveled to Los Angeles this week, he pressed Californians to support a proposed wealth tax on billionaires while opponents — including Gov. Gavin Newsom allies, crypto executives and business groups — escalated a campaign to block it. The measure, driven by the Service Employees International Union-United Healthcare Workers West (SEIU‑UHW), faces a deadline in April 2026 to collect nearly 900,000 valid signatures to reach the November ballot. Supporters say the levy is about fairness and funding public needs; opponents argue it would undermine innovation and economic growth. The coming weeks will test whether grassroots petitioning and high-profile endorsements can overcome a coordinated opposition effort that includes ads, fundraising pushes and competing ballot proposals.
Key Takeaways
- SEIU‑UHW is sponsoring the wealth tax and must gather nearly 900,000 valid signatures by April 2026 to qualify the measure for the November ballot.
- The petition campaign has recruited more than 1,000 volunteers and increased pay to circulators, doubling the per-signature rate to speed collection.
- Senator Bernie Sanders is campaigning in Los Angeles this week to frame the tax as a fairness measure aimed at billionaires.
- Opponents, including groups linked to Gov. Gavin Newsom, are deploying online advertisements tying the initiative to potential harms to the state economy.
- Crypto industry figures and business leaders have been identified as part of a fundraising push by opponents, though full contribution totals are not publicly detailed.
- Competing ballot measures and legal challenges are being discussed as parallel strategies to prevent the tax from becoming law.
Background
California has long been a focal point for debates over wealth concentration and taxation. Rising housing and living costs, coupled with the growth of Silicon Valley fortunes, have sharpened calls from labor groups and progressive politicians for higher taxes on the ultra‑wealthy. SEIU‑UHW, the union behind the measure, has a history of using ballot initiatives to press employers and policymakers on labor and health care issues; its membership includes hospital workers such as cooks, janitors and other staff in private hospitals.
Ballot-driven proposals in California frequently set off large, well-funded campaigns on both sides and can reshape the electoral landscape. Previous statewide initiatives have attracted heavy spending from corporate backers and labor unions alike, producing intense advertising battles and legal scrutiny over ballot language and signature verification. The state’s initiative process requires sponsors not only to collect large raw signature totals but to ensure a high validation rate to meet the nearly 900,000 valid‑signature threshold for the November 2026 ballot.
Main Event
Supporters intensified signature-gathering this month, training over 1,000 volunteers and raising circulator pay in an effort to meet the April deadline. Union leaders told organizers the Sanders visit would boost volunteer morale and public visibility, and they have focused field operations on dense urban precincts and areas with high hospital employment to maximize signature yield. The union describes the tax as a revenue source for public services and as a corrective to what it calls outsized billionaire wealth.
Opposition has coalesced around a message that the wealth tax could harm innovation and push entrepreneurs and capital out of California. That effort includes online advertisements that critics say are tied to Gov. Newsom’s network, a fundraising push involving crypto industry figures and the exploration of alternative ballot measures designed to split voter attention or preempt the proposed tax. Opponents argue those steps are necessary to safeguard the state economy and preserve competitiveness.
Campaigns on both sides are preparing for legal and political fights beyond signature collection. Supporters face the procedural challenge of converting raw petition signatures into the nearly 900,000 validated names required; opponents are lining up lawyers and communications teams to challenge ballot language, ballot placement and the tax’s legal standing if it reaches the ballot. The interplay of grassroots canvassing, high-profile endorsements and large-scale advertising will shape whether the measure qualifies and how it performs with voters in November.
Analysis & Implications
If the initiative qualifies for the November ballot, the campaign will illuminate fault lines in California politics between labor-backed redistributive policies and business-aligned arguments about economic competitiveness. A statewide vote would force voters to weigh potential new revenue for public services against claims that a wealth tax could discourage investment, migration of high-income earners or the formation of new companies. Economic research on wealth taxes is mixed; proponents point to revenue and reduced inequality, while critics emphasize mobility and behavioral responses by high-net-worth individuals.
Politically, the measure could test Gov. Newsom’s influence and the persuasive reach of national figures like Mr. Sanders in California races. Newsom allies’ visible opposition signals the administration’s concern about potential economic fallout and the political optics of a tax explicitly targeting billionaires. For progressives, a successful ballot qualification and passage would mark a significant policy win and may encourage similar efforts elsewhere; for moderates and business interests, preventing the tax could be positioned as protecting jobs and technological leadership.
Practical implementation and legal durability would be central if the tax passed. Wealth taxes have faced constitutional challenges elsewhere, and experts expect litigation over tax language, valuation methods and enforcement. The uncertainty around administrative feasibility could factor into voter calculus and provide grounds for courtroom disputes that might delay or limit the measure’s effect even if voters approve it.
Comparison & Data
| Item | Detail |
|---|---|
| Valid signatures required | Nearly 900,000 by April 2026 |
| Volunteer network | More than 1,000 trained canvassers |
| Circulator pay | Per-signature rate reportedly doubled |
| Target ballot | November 2026 general election |
The table summarizes the campaign’s immediate logistics: a large validation threshold, an expanded volunteer corps and increased payments to circulators. Those operational choices reflect the sponsors’ assessment of the scale required and the calendar pressures of an April deadline. Opponents’ parallel efforts — advertising, fundraising and competing measures — are aimed at either keeping the initiative off the ballot or weakening its prospects if it qualifies.
Reactions & Quotes
Supporters and opponents framed the debate in sharply different terms, each offering concise public statements that capture strategic intent and messaging:
‘Californians should not have to choose between quality public services and allowing billionaires to avoid paying their fair share.’
Supporter statement, SEIU‑UHW
The union emphasized fairness and the need for new revenue to support services; leaders say the petition drive and Sanders’ appearance are intended to broaden public awareness and turnout among voters sympathetic to redistributive proposals.
‘A tax on wealth risks driving capital and talent away from California and could chill innovation critical to our economy.’
Opposition ad messaging linked to Gov. Gavin Newsom allies
Opponents used short, targeted ads to connect economic concerns to the proposal, arguing that uncertain enforcement and valuation could create adverse incentives for investors and startups. They have also signaled willingness to back alternative measures that would split the ballot debate.
Explainer / Glossary
Unconfirmed
- Exact totals of opponent fundraising tied to crypto executives are not publicly verified and vary by source; final contribution figures were not available at the time of reporting.
- The projected economic impact on innovation and investment is contested among economists and lacks a consensus estimate applicable specifically to California for this measure.
- Whether competing ballot measures under discussion will reach qualification or materially change voter attention is uncertain until their sponsors file formal petitions.
Bottom Line
The next two months will decide whether the proposed wealth tax advances to a statewide vote. SEIU‑UHW’s intensified petition drive, bolstered by a high-profile Sanders visit and an expanded volunteer force, aims to meet a strict April 2026 signature deadline and put the measure before voters in November.
Opponents have marshaled advertising, fundraising and procedural strategies to block the initiative, arguing potential harm to the state’s economy. Even if the measure qualifies, legal challenges and implementation questions are likely to shape its ultimate effect, making the outcome consequential both for California policy and for broader national debates over taxing extreme wealth.
Sources
- The New York Times (news)
- SEIU‑UHW (labor union official site)
- Office of the Governor of California (official)