The powerful California labor union pushing for an unprecedented one-time tax on billionaires offered to dramatically scale it back to win the support of Gov. Gavin Newsom—and he promptly rejected the idea. The Service Employees International Union-United Healthcare Workers West offered to yank its proposed 5% tax if Newsom would back a 2% levy instead, reports the Wall Street Journal. But the Democratic governor “has been clear that he is strongly opposed to a California-only wealth tax,” said a spokeswoman.
“This poorly designed state-only measure will defund teachers, schools, clinics, and public safety,” she added, per the AP. “Changing the tax rate doesn’t change this measure’s fundamental flaws that harm working Californians.” The standoff lands just after officials confirmed the 5% tax proposal qualified for the November ballot. The measure faces widespread opposition, however, from the left and right, with critics arguing it would ultimately hurt the state’s coffers by pushing the richest residents to leave. Polls show modest majority support, but if it stays on the ballot, deep-pocketed opponents including Google co-founder Sergey Brin are expected to pour in money to defeat it.
