California’s fight over a proposed billionaire tax is escalating fast, with the labor chief driving the measure now signaling that the clash over extreme wealth could soon stretch far beyond the Golden State.
Dave Regan, president of the influential health care union SEIU-UHW, said Tuesday that his campaign for a one-time 5% levy on the fortunes of California’s wealthiest residents is part of a larger push to capture money he argues is being kept “outside of the tax system.”
“I think this is now a national campaign,” Regan told Politico. “We knew this was provocative, we knew it would touch a nerve, but we completely underestimated how much interest and attention it would generate.”
The ballot proposal, called Proposition 40, would apply to about 200 billionaires living in California and direct the billions of dollars it is expected to raise into the state’s health care programs.
The billionaire tax measure has already drawn intense resistance from major labor and health care organizations, along with Gov. Gavin Newsom. At the same time, some of the country’s richest tech figures and business leaders have spent tens of millions of dollars trying to defeat it.
Regan, however, argued Tuesday that the push to tax billionaire wealth is only gaining momentum, telling Politico the idea “will happen in California and lots of other states.”
“We think we’re going to win in November,” he said.
Among the most prominent opponents is Google co-founder Sergey Brin, who has contributed more than $100 million to the campaign against the tax, including a recent $20 million donation. Brin, whose net worth is estimated at about $267 billion, could owe roughly $13.3 billion if Proposition 40 becomes law.
Regan dismissed warnings that California’s wealthiest residents would simply flee the state.
“I can’t stop governor Newsom or others from spreading misinformation, but we can all look it up,” Regan said. “Its a complete fallacy that billionaires provide that much tax revenue.”
Brin, who has publicized his move to Nevada, remains financially involved in the California fight through Building A Better California, the group backing competing measures that could undermine Proposition 40.
“We don’t think any of these folks are going anywhere,” Regan said. “Less than 10 of them claimed to leave California.”
Newsom has opposed the state tax, arguing instead for a national approach. “Today, the office worker can shoulder a higher tax rate than the heiress,” Newsom said, calling for an end to the “tax-free lifestyle loan” that allows wealthy Americans to borrow against stock holdings without reporting the money as taxable income.
The billionaire tax has nevertheless gained heavyweight support from the California Democratic Party and California Federation of Labor Unions.
And Regan has his sights set beyond Sacramento.
“If Congresswoman Ocasio-Cortez is watching, we would love your support,” Regan said. “Whatever we have to do, we’re ready to help you get there.”
Proposition 40 is headed for California’s November ballot, where it could face competing measures backed by billionaire opponents.
