What to Do with California’s Billionaire Tax Proceeds
Dear John,
SEIU is pushing a so-called one-time wealth tax on California’s billionaires, pitched as a temporary fix for federal health care cuts. Marc Joffe, a California Policy Center visiting fellow, explains why the proposal rests on shaky assumptions and is likely a bridge to future taxes.
* * *
The Service Employees International Union (SEIU), one of the largest labor unions in the country, has launched an experiment in California to determine whether it can wring a large amount of revenue from the state’s billionaires. Its idea is a one-time retroactive wealth tax. This tax cannot be avoided in 2026 because it is imposed based on the taxpayer’s wealth as of January 1 of the year, and there is theoretically no need to take future evasive steps due to its one-time nature. I have expressed my doubts about this novel approach to wealth extraction elsewhere, but here I will concentrate on what the SEIU is expecting the state to do with the revenue if voters approve its tax proposal in November.
The stated purpose of the revenue is to offset federal spending cuts in the One Big Beautiful Bill Act (OBBBA) last year. SEIU’s main concern is with health care, the industry that employs most of its members, so 90 percent of the revenue would go to backfilling reduced federal spending on Medi-Cal (California’s version of Medicaid), with the remainder devoted to K–12 education and nutrition programs.
One motivation for sharing some of the tax proceeds with public schools is to garner support from the California Teachers Association, but CTA’s ballot priority for 2026 will be making permanent a “temporary” income tax surcharge on high-income earners that the state spends on K–12 schools and community colleges.
That yet another union is trying to extend an existing tax on the same ballot that will host SEIU’s novel wealth tax makes one wonder whether SEIU will also submit a repeat measure in a few years. That suspicion is reinforced by how SEIU is presenting the measure.
Continue reading Marc Joffe's article on CPC's website →
|
|
Fading Ripples from Gov. Newsom’s Last State of the State Address
Gov. Gavin Newsom’s final State of the State address on Thursday was heavy on gaslighting and light on accountability. Lance Christensen, CPC’s Vice President of Government Affairs and Education Policy, digs into the speech to unpack what the governor said — and why the speech rings hollow for many Californians.
* * *
It’s been years since Gov. Gavin Newsom put on a tie and made his way to the Assembly Chambers to grace the legislature with his presence and share some witty lines his whip-smart crisis communications team put together for him. He is, afterall, preparing to storm the country with his not-yet-declared-but-super-obvious campaign for the presidency of the United States and the stump speech has to be worked out in front of a live audience.
Rather, what we got yesterday in his final State of the State address was a 65-minute filibuster, a stemwinder not worth the minutes it took ChatGPT to assemble its wandering parts. What began as a rambling, seemingly off-the-cuff introduction taking a shot at one of his most ardent critics in the legislature, continued with an erratic memorialization of his personal rendezvous with California’s rivers, meandering around his many eroded and unkept political promises.
Continue reading Lance Christensen’s article on CPC's website →
|
|
Radio Free California #425 — The White House Is Newsom’s to Lose
On this week's podcast with CPC CEO Will Swaim and CPC board member David Bahsen: California is in chaos — wildfires, unemployment fraud, a train to nowhere, high energy costs, lousy public education, and a California exodus that includes billionaires and working people piling their personal effects into U-Haul trailers bound for Texas. David and Will discuss why none of that will likely matter in 2028. Listen now.
|
|
|
Join us for CPC's Parent Union Summit March 24-25 in Sacramento
Registration is open for CPC's fifth annual Parents Not Partisans Summit, March 24-25, 2026 in Sacramento! Join us as we celebrate the 10-year anniversary of CPC's Parent Union.
The annual summit brings together parent group leaders, education reform advocates, school board trustees and candidates from across the state to learn, train, and build coalitions for success in 2026 and beyond.
Don’t miss this opportunity to build relationships with fellow advocates across one of California’s most effective networks working to strengthen California’s K-12 education system, protect parental rights, and expand opportunity for students statewide.
Space is limited — we encourage you to register today to reserve your spot and book your hotel room through the conference room block.
Interested in becoming a CPC Parent Union Summit sponsor? Contact Sheridan Karras at [email protected].
|
|
|
|
|
