To tax or not to tax? That is the question that California voters will soon answer. A healthcare union’s controversial measure to impose a one-time tax on billionaires was officially added to the state’s November ballot this week, to the dismay of Gov. Gavin Newsom and several groups that you may not expect to oppose a wealth tax.

The initiative, known as the California Billionaire Tax Act, would slap a one-time 5% tax on people worth $1.1+ billion who have been California residents since at least Jan. 1.

• Supporters say this would rake in $100 billion over five years from the state’s 200+ billionaires.
• There are plans for the new revenue: Ninety percent would go toward healthcare to offset federal spending cuts, and the remainder would go to education and food assistance programs.

Backers include Silicon Valley Rep. Ro Khanna, billionaire activist Tom Steyer, and Sen. Bernie Sanders.

There’s plenty of opposition

Newsom has argued that a statewide billionaire tax would harm innovation and cause wealthy people to flee California. After he tried and failed to block the measure from the ballot, the governor/podcaster/2028 presidential hopeful instead proposed a national billionaire tax (unlikely to pass under the Trump administration) in a Substack post yesterday.

Plenty of billionaires are against the measure, too.

Also:

• Several unions and Democrat-aligned organizations have voiced concerns that the proposed levy could threaten income tax revenue and make other tax hikes on high earners harder to pass.
• Planned Parenthood’s California chapter said the measure is “shortsighted” and “does not offer a sustainable solution to funding cuts,” The Guardian reported.

If you live in California…expect a costly struggle for your attention. Billionaires have already given $100+ million to support rival ballot measures through a political committee called Building a Better California. Most of that funding came from Google co-founder (and the world’s third-richest person) Sergey Brin, who recently moved from California to Nevada.

Pulse check: The proposed tax has 54% support among likely voters, according to a May poll from Public Policy Institute for California.—ML

US strikes Iran after Trump accuses it of violating ceasefire. The US “struck Iranian missile and drone storage locations and coastal radar sites,” Central Command said yesterday. The attacks came after President Trump posted on Truth Social that Iran had violated the deal by attacking ships in the Strait of Hormuz with drones, one of which hit a commercial cargo ship. “Obviously, this is a foolish violation of our Ceasefire Agreement,” Trump’s post said. The status of the strait is one of the many issues at play in negotiations for a final peace deal between the US and Iran. Meanwhile, Israel and Lebanon have reached a framework for their own peace deal, officials said yesterday, although Iran-backed Hezbollah was not party to the deal.

OpenAI may delay its IPO until 2027. The ChatGPT maker hired bankers in anticipation of going public this year, but now, watching SpaceX’s share price slide and the market’s uncertainty about AI, the company is mulling waiting longer, the New York Times reports. Plus, CEO Sam Altman wants the company to be valued at $1 trillion in its debut, but its last valuation came in at $730 billion, sources told the NYT. That likely means rival Anthropic will IPO first. In other OpenAI news, the company said yesterday that it will restrict initial access to its latest AI models to a “small group of trusted partners” to assuage the US government’s safety concerns.

Volkswagen may cut 100,000 jobs. The carmaker is looking to cut costs amid competition from Chinese brands and is reportedly planning to get rid of 15% of its staff and stop manufacturing at four German facilities. The new plan builds on an existing effort to slash 50,000 jobs in Germany by 2030. The company declined to comment to news outlets on the proposed layoffs, but last week its CEO told shareholders, “Never has the risk situation been so high.” Hopefully, it works out for a company known for making lemonade from lemons.—AR

You there, in the JNCO jeans, listening to CDs you bought at Sam Goody, have we got news for you: Hacky sacks are back. The small, round, and kickable bean bags are increasingly popping up around the country, making high schools look like the outside of a Pacsun in the 1990s.

Hitting the sack: It’s unclear what initially sparked the revival, but teens in the Northeast have popularized the trend by posting rankings and videos on social media. NPR reported last month that searches for hacky sack:

• Jumped 7,000% on TikTok, year to date.
• Spiked more than 5,000% on Google in one month.

New foothold: The sudden interest has caused a shortage of footbags (which is technically what they’re called, since “Hacky Sack” is a brand name). “Business has exploded,” Bomb Footbags owner Mike Heher told Bloomberg, noting that he tripled the price of one of his bags—from $13 to $34—and it still sold out. Some stores are limiting how many a customer can buy.

Hard habit to kick: Many parents and teachers are grateful for the sack-surgence, since it gets kids off of devices and out socializing with friends.—BC