Controversial billionaire tax proposal appears destined for the November ballot

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A controversial proposal to tax California billionaires to fund healthcare has tenatively qualified for the November ballot, setting the stage for a more intense and expensive battle over whether the state should squeeze the ultra-rich.Supporters say the proposed tax is crucial to compensate for federal healthcare funding cuts, approved by President Trump and the Republican-controlled Congress, that will harm millions of the state’s most vulnerable residents.In April, supporters of the billionaire tax submitted nearly 1.6 million signatures, roughly double the number needed to qualify.The California secretary of state’s office on Wednesday declared that enough valid signatures were submitted.

The initiative will officially qualify for the Nov.3 ballot on June 25 unless the proponents withdraw it beforehand.

The initiative would imposea one-time tax of up to 5% on taxpayers and trusts with assets valued at more than $1 billion, with some exceptions, such as property.The levy could be paid over five years.

Ninety percent of the revenue would fund healthcare programs, and the remaining funds would be spent on food assistance and education programs.The proposal would cost the state’s richest residents about $100 billion if a majority of voters support it.Opponents of the measure say the proposal is an ineffective attempt to address the long-term effects of the healthcare cuts and would destroy California’s economy and budget.

The state budget in California is already largely dependent on income taxes paid by its highest earners.Because of that, revenues are prone to volatility, hinging on capital gains from investments, bonuses to executives and windfalls from new stock offerings, and are notoriously difficult for the state to predict.The proposal already triggered a fierce debate, accentuating the divide between the rich and poor in a state that’s expensive to live in...