Full Breakdown
Proposition 40 Billionaire Tax Sparks Split Among California Labor Unions
7/31/2026, 12:49:28 PM
Core Event
California voters will decide in November on Proposition 40, a ballot measure that would levy a one-time 5 % tax on the assets of billionaires residing in the state at the start of the year. The proposal is promoted as a way to fund a projected $100 billion shortfall in health-care and food-assistance programs. While several unions and Democratic officials back the measure, a coalition of labor groups—including the California State Council of Laborers, United Domestic Workers and the California Police Chiefs Association—has announced opposition, highlighting internal divisions within the labor movement.
Background & Context
The tax was drafted by SEIU United Healthcare Workers West (SEIU-UHW) after SEIU California voted neutral. SEIU-UHW President Dave Regan says the levy is needed to avert a “catastrophe in California’s healthcare system.” Governor Gavin Newsom has signaled support for a federal wealth tax to prevent wealthy Californians from escaping state levies by moving elsewhere.
Official Statements & Responses
SEIU-UHW communications director Nathan Selzer described the measure as a modest contribution from “more than 200 California billionaires” to keep hospitals and emergency rooms open. SEIU California emphasized a “multi-year campaign” for sustainable revenue, noting its members’ focus on broader fiscal reforms. United Domestic Workers President Astrid Zuniga argues the tax fails to fund in-home care or child-care, and Council of Laborers Executive Director Joseph Cruz warns it could deter investment and job creation.
Criticism & Opposition
Labor critics contend the tax could drive high-earners out of state, shrinking the income-tax base that funds public services. They also note the lack of dedicated funding for child-care and supportive services. Business figures, including Google co-founder Sergey Brin, have contributed millions to a committee fighting the proposition.
Verbatim Quotes
- “Instead, we need a long-term plan for funding these programs, so that our communities can grow and thrive for years to come” — Astrid Zuniga, President, United Domestic Workers
- “For these reasons, we’re urging our members to vote no on Prop. 40, because we know it’s possible to deliver a better funding plan for our communities.” — SEIU California
- “Prop. 40 makes more than 200 California billionaires pay a modest, one-time tax to keep local hospitals and ERs open and healthcare affordable for millions of Californians, and the coalition is actively reaching out to labor and CADEM delegates to make sure they have all the facts about this ballot measure,” — Nathan Selzer, Director of Communications, SEIU-UHW
- “One reason it could go down is if the coalition opposing and supporting is kind of mixed, voters might go, ‘I’m not sure about this, I’m just going to vote no,’” — Christian Grose, Political Science Professor, USC
