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California’s billionaire tax battle is quickly turning into a war on the ultra-rich — as the labor leader behind the controversial measure is now promising to bring it to a national stage.
Dave Regan, president of the powerful health care labor union SEIU-UHW, said Tuesday that his push for a one-time 5% tax on the wealth of California’s richest residents has become part of a broader effort to target money “hoarded outside of the tax system.”
“I think this is now a national campaign,” Regan said to Politico. “We knew this was provocative, we knew it would touch a nerve, but we completely underestimated how much interest and attention it would generate.”
The proposal, known as Proposition 40, would target roughly 200 California billionaires and funnel the estimated billions in revenue toward the state’s health care programs.
The measure initially faced fierce opposition from powerful labor and health care groups, as well as Gov. Gavin Newsom, while billionaires and tech executives have poured tens of millions of dollars into fighting it.
Now the billionaire tax is inevitable, according to Regan, who told Politico Tuesday, it “will happen in California and lots of other states.”
“We think we’re going to win in November,” he added.
Google co-founder Sergey Brin alone has now contributed more than $100 million to the effort opposing the tax, including a recent $20 million donation. With a fortune estimated at roughly $267 billion, Brin could face an estimated $13.3 billion hit under the proposal.
Regan dismissed warnings that California’s wealthiest residents would simply flee the state.
“I can’t stop governor Newsom or others from spreading misinformation, but we can all look it up,” Regan said. “Its a complete fallacy that billionaires provide that much tax revenue.”
Brin, who has publicized his move to Nevada, remains financially involved in the California fight through Building A Better California, the group backing competing measures that could undermine Proposition 40.
“We don’t think any of these folks are going anywhere,” Regan said. “Less than 10 of them claimed to leave California.”
Newsom has opposed the state tax, arguing instead for a national approach. “Today, the office worker can shoulder a higher tax rate than the heiress,” Newsom said, calling for an end to the “tax-free lifestyle loan” that allows wealthy Americans to borrow against stock holdings without reporting the money as taxable income.
The billionaire tax has nevertheless gained heavyweight support from the California Democratic Party and California Federation of Labor Unions.
And Regan has his sights set beyond Sacramento.
“If Congresswoman Ocasio-Cortez is watching, we would love your support,” Regan said. “Whatever we have to do, we’re ready to help you get there.”
Proposition 40 is headed for California’s November ballot, where it could face competing measures backed by billionaire opponents.
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