Populist Passion Fuels the Evening (Image Credits: Unsplash)
Los Angeles – Independent Sen. Bernie Sanders of Vermont addressed a fired-up crowd of roughly 2,000 at the Wiltern theater on Wednesday, championing a ballot measure that would impose a one-time 5% tax on the net worth of the state’s billionaires.[1][2]
Populist Passion Fuels the Evening
Sanders delivered a blistering speech that framed the tax as a stand against economic oligarchy. He declared that billionaires no longer viewed themselves as part of American society but as a separate elite with a “divine right to rule.”[1] The Vermont senator warned that the wealthy were “treading on very, very thin ice” amid grotesque inequality, where few controlled unprecedented power.[2]
Rage Against the Machine guitarist Tom Morello opened with performances of “Killing in the Name” and Bruce Springsteen’s “The Ghost of Tom Joad,” amplifying the populist energy. Labor leaders from SEIU-United Healthcare Workers West, the initiative’s lead backers, shared personal stories of health care struggles. Sanders concluded with a call to action: “The billionaire class cannot have it all. This nation belongs to all of us.”[1]
Unpacking the One-Time Wealth Tax
The California Billionaire Tax Act targets net worth exceeding $1 billion as of 2025 for state residents, applying a 5% levy payable over five years. Covered assets include businesses, securities, art, collectibles, and intellectual property, while real property and certain pensions remain exempt.[3]) Proponents estimate it would affect around 200 individuals and generate tens of billions for public needs.[2]
Signature gatherers need about 547,000 valid submissions by June 2026 to secure a spot on the November ballot. The measure cleared for circulation last December after filing in October 2025.[3]) Organizers already collected names outside the rally.
Offsetting Deep Federal Health Cuts
Revenue would flow to a dedicated fund, with 90% bolstering health care programs like Medi-Cal and 10% supporting K-12 education or food assistance. The push responds to President Trump’s 2025 cuts, projected to strip California of $30 billion annually in Medicaid funds starting 2027, potentially leaving 3.4 million without coverage.[4]
Hospitals face closure risks, and rural services could vanish without new state dollars. Sanders argued the tax ensured “access to hospitals and emergency rooms, not more tax breaks for billionaires.”[3]) Union leaders highlighted cases like monthly $10,000 injections now at risk.[1]
Deep Rifts Within Democratic Ranks
The proposal has fractured California Democrats. Gov. Gavin Newsom called it damaging, warning of lost revenue and an exodus of high earners that could harm startups and jobs.[3]) San Jose Mayor Matt Mahan and others eyeing the governorship echoed concerns about economic fallout.
- Key Supporters: SEIU-UHW, Teamsters California, Rep. Ro Khanna, Sanders.[3])
- Key Opponents: Newsom, former Health Secretary Xavier Becerra, venture capitalists like Peter Thiel and Reid Hoffman, California Business Roundtable.[3])
Business leaders predict $100 billion in total levies but fear broader tax base erosion as wealth flees to states like Florida or Texas.[1]
Key Takeaways
- The tax targets 2025 wealth retroactively to curb preemptive exits.
- California hosts more billionaires than any state, amplifying stakes.
- A January poll showed 48% support among likely voters.
Sanders’ rally marked a bold escalation in the wealth tax debate, testing whether California voters prioritize equity over economic caution. As signatures mount, the measure could redefine fiscal battles nationwide. What do you think of the billionaire tax proposal? Share in the comments.