Top Democrats battle over California's proposed billionaire tax
Sen. Bernie Sanders and Rep. Ro Khanna will rally in support of an initiative that would place a one-time 5% tax on the wealth of billionaires in the state.
Sen. Bernie Sanders and Rep. Ro Khanna are traveling to California to rally in support of a proposed one-time 5% tax on the wealth of billionaires in the state. Early voting has begun, and millions have been spent to oppose the measure. The tax would affect around 200 of California’s billionaires, with the money going to cover federal Medi-Cal cuts.
Governor Gavin Newsom is the most prominent opponent, arguing that the tax could be evaded by billionaires who could leave the state. Khanna has challenged Newsom to a debate and proposed town halls to discuss the issue. Newsom has stated that he fundamentally disagrees with the tax proposal but supports a national billionaire tax.
Tech investors have strongly opposed the measure, with some billionaires financing the opposition effort, which has raised over $252 million. Critics argue that the tax could lead to wealthy Californians relocating and taking their wealth with them, reducing future income tax revenue.
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