Labor organizers spearheading California billionaire tax measure rebuffed by parent union

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Set us as preferred SACRAMENTO — One of California’s most powerful labor unions declined to endorse a proposed state billionaires tax, a blow to its backers and a sign of simmering divisions on the left over the controversial ballot measure.The executive board for Service Employees International Union California voted Wednesday to take a neutral position on the tax, which will appear on the November ballot as Proposition 40.It would impose a one-time, 5% tax on the assets of billionaires who resided in the state as of Jan.

1, 2026.In a statement, the 750,000-member union noted revenue from the “one-time tax proposal [is] dedicated 90% to healthcare,” echoing concerns from other unions opposed to the measure.Teacher, police and firefighter unions argue the tax would largely benefit the healthcare sector and fear it would destabilize the state budget and, along with it, services such as education and public safety.

SEIU California is a parent organization of SEIU-United Healthcare Workers West, the union that crafted the measure and moved to put it on the ballot before securing broad support from other labor groups.California The union leader behind California’s proposed billionaire tax was in talks with Gov.

Gavin Newsom to take it off the ballot.SEIU-UHW President Dave Regan said he pushed the tax to backfill an estimated $100 billion in cuts to healthcare and food assistance programs that California is expected to shoulder under the One Big Beautiful Bill Act signed by President Trump last year.“Trump’s ‘Big, Ugly Bill’ slashed funding for healthcare in California to pay for more billionaire tax breaks.Now, millions of Californians are losing their health coverage, and millions more are being forced to pay skyrocketing costs,” SEIU-UHW Press Secretary Renee Saldana wrote in a statement to The Times.Sa...