On The Ballot In CA: One Time Tax On Billionaires To Stem Medical Cuts

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India-West Staff Reporter

SACRAMENTO, CA — A new California ballot initiative proposing a one-time 5% tax on billionaires was unveiled on October 23 by advocacy group Save California Health Care and Public Education. The group hosted a virtual press conference announcing the measure and launched a dedicated website, CAbillionairetax.org, with full details of the proposal.

The initiative is designed to restore funding for the state’s healthcare system, which is facing a projected $100 billion shortfall over the next five years due to federal Medicaid cuts. Officials warn that without intervention, the reductions could trigger widespread disruptions, including hospital closures, reduced long-term care capacity, and staffing losses, severely impacting working families across California.

“This is a manufactured crisis,” said Professor Robert Reich, former U.S. Secretary of Labor, speaking at the event. “These federal cuts didn’t happen by accident—they were designed to shield billionaires while shifting the burden onto patients, providers, and communities. A time-limited emergency tax on the ultra-wealthy is a practical way to keep the healthcare system functioning.”

The press conference brought together leading economists and public policy experts, including Professor Emmanuel Saez of the University of California, Berkeley, along with frontline healthcare workers and patients. Saez highlighted the scale of the proposal, noting that a one-time 5% levy on Californians with more than $1 billion in wealth—roughly 200 individuals statewide—could generate approximately $100 billion. “The wealth of California billionaires has exploded in recent years, while health and education programs face deep cuts,” he said. “This measure is small relative to the gains billionaires have made, yet large enough to preserve programs crucial to California’s economy and social well-being.”

Healthcare workers at the press conference emphasized the urgent need for replacement funding. “We are already short-staffed, and every week more patients walk through our doors with fewer places to go,” said Mayra Castanada, an ultrasound technologist in Lynwood, CA. “If these cuts take effect without replacement funding, it won’t just mean longer lines—it means people won’t be able to get care when they need it.”

The initiative is also supported by advocacy groups such as the Patriotic Millionaires. Tim Disney, speaking on their behalf, described the measure as a “common-sense solution” that ensures the state’s wealthiest residents contribute to the systems that enabled their success. “This measure will not solve every problem in our state or country, but it is an important step in the right direction,” he said.

Analysts warn that without intervention, California could experience widespread consequences, including the closure or contraction of hospitals and clinics, loss of up to 145,000 healthcare jobs, and strained access to care for working families. The initiative is designed to target only the ultra-wealthy, with no new taxes imposed on middle-class residents, small businesses, or homeowners.

The proposed tax would also allocate a smaller portion of revenue to support K-12 public education, which is expected to face direct and indirect impacts from the federal funding cuts. Proponents say the initiative offers a timely, equitable solution to a looming fiscal and public health crisis, demonstrating a model for funding essential public services while maintaining fairness in taxation.