What’s going on: California dreamin’ might’ve reached new heights — at least when it comes to the ballot. The state’s health care workers’ unions want to push through an initiative in the November election to impose a one-time 5% tax on billionaires’ assets. The move could offset expected Medicaid cuts and promises a big payoff — about 255 billionaires call California home. They’re not the only ones thinking about going after the money. NYC Mayor Zohran Mamdani (D) is considering two budget options: Tax his city’s wealthiest residents and corporations or raise the property tax on working- and middle-class residents. Meanwhile, the governors of Rhode Island and Washington (one of the nine states without an income tax) are weighing levies on their richest residents to help close budget deficits.
What it means: As for whether or not these proposals will make it across the finish line, don’t hold your breath. States are worried about people relocating. Tech billionaires, including Palantir co-founder Peter Thiel, are already threatening to leave California, and take jobs with them (some already have). That might be enough to convince some voters to mobilize against these tax plans. But something will have to change sooner or later. The wealthiest households are propping up the US economy, even as the wealth gap continues to grow — potentially spelling trouble for the rest of us if they stop spending.
