California
What is the California Billionaire Tax Act? Is it actually happening?
How do billionaires avoid paying taxes? Here’s what we know now.
The super wealthy can afford to avoid paying taxes, but how? Here’s what we know now.
A major labor union is working to put a new wealth tax proposal in front of Californians in November. But the proposal would only actually impact a small few — billionaires.
The California Billionaire Tax Act is a one-time tax that, if realized, would unlock revenue from the wealthiest in the state to support a health care system that some elected officials and leaders have warned faces major strain due to federal funding cuts.
The statewide proposal, led by Service Employees International Union-United Healthcare Workers West, has been in the works for some time. Attorney General Rob Bonta issued the official title and summary for the tax act at the end of December, paving the way for proponents to collect the tens of thousands of signatures they’ll need to get this proposal on the ballot in November.
Vermont Sen. Bernie Sanders joined the proposal’s campaign kickoff in Los Angeles on Wednesday, Feb. 18, tossing out numerous figures that illustrated wealth disparities in the United States and likening billionaires having to pay a few billion dollars more in taxes as “pocket change.”
His clear support comes as Gov. Gavin Newsom has opposed it and as the proposal has generated fears it’d force California’s wealthiest residents to flee. Rep. Kevin Kiley of California’s 3rd Congressional District is set to introduce a bill fighting the tax proposal, saying it’s making California’s “leading job creators” leave preemptively.
Meanwhile, Los Angeles County leaders have turned to a proposed temporary sales tax increase to offset health care funding cuts. In June, county voters will decide whether to back it.
Here’s what to know about the California Billionaire Tax Act.
Who is taxed under the California Billionaire Tax Act?
Californians with a net worth of $1 billion or more and certain trusts would see a one-time 5% tax, according to a filing for the proposal. Proponents said this tax will apply to about 200 people in California.
How is health care changing for Californians under Trump?
President Donald Trump’s “One Big Beautiful Bill Act” implements changes in eligibility for both Medi-Cal, the state’s Medicaid program, and CalFresh, the state’s Supplemental Nutrition Assistance Program.
The changing work requirements, paired with “administrative burden,” could leave one to two million people without Medi-Cal, according to the nonpartisan Legislative Analyst’s Office. By 2028, up to three million people could lose Medi-Cal, both due to OBBA and changes made in California’s budget, Miranda Dietz, director of the Health Care Program at UC Berkley Labor Center, told California lawmakers in February.
Dietz, citing a previous look at the impact of OBBA, said that a projected $20 billion decrease in federal funding would mean 200,000 fewer jobs in the state, nearly two-thirds of which are “directly” in health care.
Also at risk: Hospitals will face lower margins due to fewer Medi-Cal enrollees and more uninsured patients, according to Jason Constantouros of the LAO, citing recent studies. Public hospital systems face $3.4 billion a year in federal funding cuts, the California State Association of Counties said in a report estimating the costs of OBBA.
What does this wealth tax in California do?
The revenue would be used to respond to “urgent, existing health care, education, and nutrition needs,” according to a filing for the initiative. Ninety percent of the revenue this tax generates would go to the Billionaire Tax Health Account, while 10% would go to the Billionaire Tax Education and Food Assistance Account.
Where would the money from the California Billionaire Tax Act go?
It’s supposed to create revenue to fund health care, education, and food assistance through a one-time tax.
Among what the money that goes into the Billionaire Tax Health Account could be used for, according to a filing, include:
- Spending to restore or address funding cuts or reductions
- Investments to protect or enhance Medi-Cal
- Prevention or mitigation of facility closures
- Other investments to support health care access, coverage and more
The money that goes into the Billionaire Tax Education and Food Assistance Account could be used for:
- Spending related to education and food assistance to restore or address funding cuts or reductions
- To make investments in the public education system or further investments in CalFresh, CalFAP, CalFood, or California’s Universal Meals Program
When would this wealth tax occur?
The tax would be due in 2027, although taxpayers could opt to spread the payments out over five years at a higher cost, according to the LAO.
The LAO said the wealth tax would “probably” collect tens of billions of dollars, but it’s hard to determine the exact figure. One reason is that it’s “hard to know what actions billionaires would take to reduce the amount of tax they pay.”
Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reach her at pbarraza@usatodayco.com.
California
Supreme Court blocks California law limiting schools from telling parents about trans students
BAKERSFIELD, Calif.(KBAK/KBFX) — The U.S. Supreme Court has temporarily blocked a California law that limited when schools could require staff to disclose a student’s gender identity, clearing the way for schools to tell parents if their children identify as transgender without getting the students’ approval.
Rear view of multiracial students with hands raised in classroom at high school
The decision came after religious parents and educators, represented by the Thomas More Society, challenged California school policies aimed at preventing staff from disclosing a student’s gender identity.
Erwin Chemerinsky, dean and professor of law at the University of California Berkeley School of Law, said the ruling favors parents’ ability to be informed. “The Supreme Court today rules in favor of the claim of parents to be able to know the gender identity and gender pronoun of the children,” Chemerinsky said.
FILE:{ }transgender flag against blue sky background { }(Photo: AdobeStock)
The decision temporarily blocks a state law that bans automatic parental notification requirements if students change their pronouns or gender expression at school. The Thomas More Society called the decision a major victory for parents, saying the court found California’s policy likely violates constitutional rights.
Chemerinsky said the Supreme Court’s action is an emergency ruling. “This law is now put on hold. So what this means is that schools can require that teachers and other staff inform parents of the gender identity or gender pronouns of children,” he said.
Kathie Moehlig, founder and executive director of Trans Family Support Services, said she is concerned about how the ruling could affect students who do not have supportive families.
“I am really concerned about our kids that do come from these non affirming homes, that they know that they’re going to get in trouble, that they’re going to possibly have violence brought against them possibly kicked out of their homes,” Moehlig said.
Moehlig said parents should eventually know, but that the conversation should happen when a student feels safe. “Our students are going to be less inclined to confide in any adults that might be able to help to get them access to mental healthcare, to a support system. They may still tell their peers but they’re certainly not going to tell any other adult,” she said.
Equality California, a LGBTQ+ civil rights organization, shared a statement:
Equality California, the nation’s largest statewide LGBTQ+ civil rights organization, released the following statement from Executive Director Tony Hoang in response to today’s U.S. Supreme Court shadow docket ruling in Mirabelli v. Bonta regarding California’s student privacy protections for transgender youth. Today’s decision by the U.S. Supreme Court to intervene in this case is deeply disturbing. By stepping in on an emergency basis, the Court has effectively upended California’s student privacy protections without hearing full arguments and before the judicial process has run its course. While not surprising, this move reflects a dangerous willingness to short-circuit the established judicial process to dismantle protections for transgender youth. While this case continues to be litigated, the ruling revives Judge Benitez’s prior decision, which broadly targets numerous California laws protecting transgender and gender-nonconforming students — threatening critical safeguards that prevent forced outing and allow educators to respect a student’s affirmed name and pronouns at school. These protections exist for one reason: to keep students safe and ensure schools remain places where young people can learn and thrive without fear. To be clear: today’s decision does not impact California’s SAFETY Act, which prohibits school districts from adopting policies that forcibly out transgender students. The SAFETY Act remains in full effect, and we will continue defending it. Transgender youth deserve dignity, safety, and the freedom to learn without fear. We will never stop fighting for transgender youth and their families. Equality California will continue working with parents, educators, and advocates to ensure schools remain safe, welcoming, and focused on the success and well-being of every student.
The case now returns to the U.S. Court of Appeals for the Ninth Circuit, which will decide whether the California law is constitutional.
California
Rep. Kevin Kiley announces run in California’s redrawn 6th Congressional District
Congressman Kevin Kiley has announced his plan to run in California’s newly redrawn 6th district.
In a statement on Monday, Rep. Kiley revealed he had considered running in the 5th District – which could have set up a possible showdown between two current Republican officeholders.
“It’s true that I was fully prepared to run in the new 5th, having tested the waters and with polls showing a favorable outlook in a “safe” district. But doing what’s easy and what’s right are often not the same,” Kiley stated.
Kiley currently represents California’s 3rd district, which originally comprised counties making up much of the back spine of the state.
As of the Prop. 50 redistricting push, the 3rd district was redrawn for the 2026 midterm election to lean toward the Democratic Party – with those eastern spine of California counties lopped off and more of Sacramento County, including Rancho Cordova, added.
California’s new 6th district is now comprised of Rocklin, Roseville, Citrus Heights, much of North and East Sacramento, and the city of West Sacramento. Democratic Rep. Ami Bera currently represents the district, but will be running for the new 3rd district in 2026.
Other declared candidates for the 6th district include Democrats Lauren Babb Thomlinson, Thien Ho, Richard Pan, Kindra Pring, Tyler Vandenberg, and Republicans Christine Bish, Craig DeLuz, and Raymond Riehle.
Kiley was first elected to the House in 2022 and was reelected in 2024.
California
Preliminary magnitude 3.3 earthquake strikes near San Ramon, USGS says
SAN RAMON, Calif. (KGO) — An earthquake with a preliminary magnitude of 3.4 struck near San Ramon at 11:21 p.m. Sunday, the U.S. Geological Survey said.
USGS said the tremor was about 8.4 km in depth.
According to the Geological Survey, people typically report feeling earthquakes larger than about magnitude 2.5.
The closer to the surface an earthquake occurs, the more ground shaking and potential damage it will cause.
No injuries have been reported.
This is the latest quake in San Ramon, which has seen multiple strings of tremors in the past several months.
Bay City News contributed to this report.
MAP: Significant San Francisco Bay Area fault lines and strong earthquakes
Zoom in on the map below and compare where you live to the significant faults and where strong earthquakes have struck in the Bay Area.
Stay with ABC7 News for the latest details on this developing story.
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