California voters will decide in November whether to implement a one-time 5% tax on the state's billionaires. The proposal, which aims to address rising wealth disparities, officially heads to the ballot after the secretary of state certified the measure late Thursday. The initiative qualified after gathering more than double the necessary signatures.
The divisive measure has sparked strong opposition from tech moguls and the state's super-rich, who have spent millions of dollars attempting to stop the proposal. It arrives on the ballot after backroom dealings and attempts to reach a compromise failed between the labor union backing the tax and Governor Gavin Newsom, who opposes the measure.
Despite his opposition to the state-level tax, Governor Newsom, who is considering a run for the White House, has recently proposed an expansive national wealth tax. Additionally, he has suggested that the U.S. government should own a stake in artificial intelligence companies.