California billionaire tax proposal has enough signatures for November ballot

Get ready for what could become a high-stakes "billionaire battle" on California's ballot.

Voters may soon be able to decide whether to impose a one-time tax on the state's wealthiest residents, aimed at raising cash to cope with federal cuts and the state budget deficit.

"It's an extremely stressful time," said Mervin Brookins, CEO of Sacramento-based nonprofit Brother-to-Brother.

Brookins said his organization, which provides mentoring and after-school programs in under-resourced communities, relies heavily on grants that could be impacted by funding cuts. He supports the proposed tax as a way to help fill any gaps in funding.

"It's not to say that 'you've been successful so you owe,' " Brookins said. "It's just 'give back and help the next man up.' That's the way I look at it."

The California Billionaires Tax Act, backed by SEIU-United Healthcare Workers West, was announced at a rally on Monday. Organizers say they have gathered enough signatures to qualify for the November ballot.

According to Forbes, there are 214 California billionaires. Topping the list are Google co-founder Sergei Brin, Meta CEO Mark Zuckerberg, Nvidia CEO Jensen Huang, Broadcom co-founder Henry Samueli and PayPal co-founder Peter Thiel.

According to Forbes, California is home to 214 billionaires, including tech leaders like Google co-founder Sergei Brin, Meta CEO Mark Zuckerberg, Nvidia CEO Jensen Huang, Broadcom co-founder Henry Samueli and investor Peter Thiel. California billionaires' combined wealth exceeds $1 trillion.

Sacramento State finance professor Sanjay Varshney said that while Californians may vote with their pocketbook, a special billionaire tax won't be easy to enforce.

"It's an interesting concept," Varshney said. "I'm not sure how easy it would be to implement. It's one thing to say we have a billionaires' tax, and we know roughly who these billionaires are. It's another to have legal standing and actual documentation."

The proposal calls for a one-time 5% tax, which supporters estimate could generate roughly $100 billion.  

Several billionaires have already moved out of the state, anticipating this tax.