Billionaire-tax backers say they have enough signatures — times two — to qualify for ballot

Supporters of the billionaire tax said Sunday that they had collected nearly twice as many signatures as needed for the controversial proposal to pass on the November ballot.

Opponents of the proposal argue that it drives wealthy Californians, who are vital to funding the state’s volatile budget, to other parts of the country. But advocates say the proposed tax is critical to offset federal health care funding cuts that would harm the state’s most vulnerable residents.

“Most Californians and billionaires recognize how reasonable and necessary this proposal is, both to keep emergency rooms open and to save California businesses from closing,” said Suzanne Jimenez, chief of staff for the Service Employees International Union-United Healthcare Workers of the West, the lead proponent of the effort. “A very small group of the most controversial billionaires on the planet tried to stop this effort,” he added, but “by the time our growing coalition files these signatures, David will have won the first round against Goliath.”

The union, which represents more than 120,000 healthcare workers, patients and consumers, has launched an effort to counter the massive health care funding cuts President Trump signed last year. The California Budget and Policy Center has estimated that without new funding, as many as 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could close and other health services would be disrupted.

The proposal would impose a one-time tax of up to 5 percent on taxpayers and trusts with assets valued at more than $1 billion, with some exceptions such as estates. The tax can be paid in five years. 90 percent of the revenue will be transferred to health programs, while the remaining funds will be spent on food aid and education programs. If a majority of voters support it, the proposal would cost the state’s wealthiest residents nearly $100 billion.

Supporters must submit the signatures of approximately 875,000 registered voters to county election officials by June 24. They say they collected approximately 1.6 million signatures.

Opponents of the measure that has divided liberals — Sen. Bernie Sanders (I-Vt.) supports it while Democratic California Gov. Gavin Newsom opposes it — said the proposal would destroy California’s economy and budget but do nothing to address the state’s fundamental fiscal problems.

“This wealth tax would have a devastating impact on our economy, our state budget, and the cost of living for all Californians,” said Rob Lapsley, chairman of the bipartisan California Business Roundtable. “The measure does nothing to reduce the state’s more than $35 billion budget deficit and does nothing to address a decade of overspending that has led to a structural deficit. In fact, because the state relies heavily on tax revenues from high-income earners, this measure could lead to reduced budget revenues in the long run as highly mobile wealthy individuals leave the state to avoid this new tax.”

He also argued that the proposal could result in higher taxes for all Californians.

“This is a tax on everyone, the so-called billionaire tax,” Lapsley said, “and we will make sure Californians understand the truth about the devastating consequences this initiative will have.”