California voters will decide on Tuesday whether to introduce a one-time five percent tax on billionaires, a proposal that could make it the first US state to tax personal wealth on this scale.
Proposition 40 would apply to residents worth more than $1 billion, with most of the revenue going towards healthcare funding affected by federal cuts.
According to the Associated Press, the proposal has divided Democrats and prompted wealthy technology executives to spend millions opposing it.
Senator Bernie Sanders supports the measure, arguing that billionaires should contribute more to public services.
However, California Governor Gavin Newsom warns the tax could drive wealthy residents out of the state.
Google co-founders Sergey Brin and Larry Page have reportedly begun reducing their ties to California, while Meta CEO Mark Zuckerberg has arranged financing to help cover a potential tax bill.
Supporters, including healthcare workers’ unions, argue the money is urgently needed to protect healthcare services.
“It’s time to collect those taxes so we can ensure that our healthcare system is still safe,” said Lorena Gonzalez, president of the California Federation of Labor Unions.
An October poll found 52 percent of likely voters opposed the proposal, while 46 percent supported it.
Opponents have also backed separate ballot measures that could prevent the tax from taking effect even if Proposition 40 passes.
