California labor union offers to scale back billionaire tax proposal after pushback
A large banner is seen at a campaign event for a proposed "billionaires tax" in Los Angeles on Feb. 18, 2026. (AP Photo/Jae C. Hong, File)
SACRAMENTO, Calif. (AP) — A labor union behind a controversial tax on California billionaires significantly scaled back its proposal a day after it qualified for the November ballot, but the offer Thursday wasn’t enough to get the governor on board.
The proposal from the Service Employees International Union Healthcare Workers West to impose a one-time, 5% tax on individuals whose net worth exceeds $1 billion faces staunch pushback from a wide swath of critics, including Democratic Gov. Gavin Newsom. The union said Thursday that it would abandon the 5% tax proposal if Newsom would join them in supporting a 2% levy. The updated proposal would instead have to be passed by the Legislature, given a June 25 deadline for the measure to qualify for the ballot.
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