Senator Bernie Sanders, a political hero among liberals and populists, will formally begin the campaign next week to put a new tax on billionaires on the November ballot in California.
The controversial proposal, which would impose a one-time 5% tax on the assets of the state's wealthiest residents, is critical to offsetting federal funding cuts to health care enacted by the Trump administration, Sanders said in a statement.
“This initiative would provide the funding needed to prevent more than 3 million working-class Californians from losing the health care they currently have and help prevent the closure of California hospitals and emergency rooms,” he said. “It should be common sense for billionaires to pay a little more so that entire communities can preserve access to life-saving health care. Our country needs access to hospitals and emergency rooms, not more tax breaks for billionaires.”
The independent senator from Vermont, who is part of the Democrats in the nation's Capitol, will appear on February 18 at the Wiltern in Los Angeles alongside prominent musical acts. Sanders has a deep base of support among California Democrats, winning the state's 2020 presidential primary over Joe Biden by eight points and narrowly losing the 2016 primary to Hillary Clinton. In both elections, he won the votes of more than 2 million Californians, who were also an important source of small donations that fueled his insurgent campaigns.
The tax proposal, which Sanders previously endorsed on social media, is proposed by the Service Employees International Union-United Healthcare Workers West. Supporters must gather signatures from nearly 875,000 registered voters and submit them to county election officials by June 24 for the measure to qualify for the November vote. They began gathering signatures in January.
Supporters of the tax argue it is one of the few ways the state can cover significant federal cuts to health care services for California's most vulnerable residents. Opponents warn that it would end the innovation that has enriched the State and cause an exodus of wealthy businessmen.
More than 200 billionaires in California would be affected if the proposal qualifies for the vote and is approved. Some prominent billionaires have already left the state, notably PayPal co-founder Peter Thiel and venture capitalist David Sacks.
Both men were big supporters of President Trump.
Democrats are divided on the issue. Notably, Gov. Gavin Newsom and San Jose Mayor Matt Mahan, who is among a dozen candidates running in November to replace the outgoing governor, oppose the proposal.
