California's Bold 5% Wealth Tax on Billionaires Could Raise $100 Billion for Social Programs
A new ballot initiative in California aims to introduce a 5% wealth tax on the state’s richest residents. If approved this November, the measure would target around 200 billionaires whose combined fortunes exceed $2 trillion. Supporters say the tax could raise $100 billion to protect vital social programmes for millions of struggling Californians. Trade unions, including the Service Employees International Union-United Healthcare Workers West, collected signatures to place the proposal on the ballot. Their push comes as wealth inequality in the U.S. reaches historic levels. Over the past six years, American billionaires more than doubled their wealth, gaining over $4.6 trillion in total.
Nationwide, 938 billionaires saw their fortunes grow by $1.5 trillion after major tax cuts. In California alone, the five wealthiest individuals added $300 billion to their wealth last year. Elon Musk now holds more money than the combined assets of the bottom 53% of U.S. households. The gap between rich and poor has widened dramatically since 1975. Nearly $80 trillion has shifted from the bottom 90% of earners to the top 1%. Today, the average American worker earns $28 less per week than in 1970, after adjusting for inflation. Over 60% of the population lives paycheck to paycheck, and almost half of older workers have no retirement savings. The proposed tax would fund healthcare and nutrition assistance for low-income and working-class families. Without it, millions could lose access to essential support programmes.
The initiative’s success would depend on voter approval in November. If passed, the 5% levy on California’s wealthiest residents would generate billions in annual revenue. The funds would help stabilise social services at a time when economic pressures on ordinary workers continue to grow.
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