Bernie Sanders Backs California Billionaire Tax Amid Newsom Opposition

The California Billionaire Tax Act, currently in the signature-gathering phase, seeks to generate $100 billion to offset federal Medicaid cuts enacted under the Trump administration. Supporters, including the Service Employees International Union-United Healthcare Workers West, argue the revenue is essential to prevent a state healthcare collapse. Chief of staff Suzanne Jimenez noted that the tax would provide critical emergency funding while keeping rates lower than those seen during the Reagan era.

Prominent figures such as Peter Thiel and Larry Page have reportedly threatened to exit the state to avoid the levy, which would apply retroactively to residents as of January 1, 2026. Financial estimates suggest potential tax liabilities of $1.2 billion for Thiel and $12 billion for Page. Despite the high stakes, the proposal has gained support from lawmakers like U.S. Representative Ro Khanna.

Governor Newsom has aligned himself against the initiative, with reports indicating he is organizing a committee to block its path to the November 2026 ballot. State finance records show early backing for the opposition, including a $100,000 donation from venture capitalist Ron Conway. Sanders, meanwhile, intends to leverage the California effort as a blueprint for a forthcoming federal wealth tax proposal, framing the struggle as a necessary correction to a system where the top 1% holds more wealth than the bottom 93%.