Politics
Billionaire tax proposal faces hurdles as it moves closer to November ballot
A contentious proposal to tax California billionaires to alleviate federal healthcare cuts moved closer to landing on the November ballot this week, but efforts to defeat the measure before it reaches voters have already escalated.
The California secretary of state’s office said Wednesday that the proposal had enough valid signatures to be eligible for the Nov. 3 ballot. But discussions that have included the governor’s administration and lawmakers are underway about a potential deal that could prevent the initiative from being put in front of voters, according to people familiar with the negotiations.
Supporters have until June 25 to withdraw the initiative or go forward with placing it on the ballot. The negotiations highlight the escalating debate surrounding the billionaire tax, an idea that has divided the Democratic Party and drawn fresh opposition from healthcare and education groups. The negotiations are in flux, and the outcome remains uncertain.
The initiative would impose a one-time tax of up to 5% on taxpayers and trusts with assets valued at more than $1 billion, with some exceptions, such as property. The levy could be paid over five years. Ninety percent of the revenue would fund healthcare programs, and the remaining funds would be spent on food assistance and education programs. The proposal would cost the state’s richest residents about $100 billion if a majority of voters support it.
Backers of the proposed tax say it’s crucial to compensate for federal healthcare funding cuts, approved by President Trump and the Republican-controlled Congress, that will harm millions of the state’s most vulnerable residents. In April, supporters of the billionaire tax submitted nearly 1.6 million signatures, roughly double the number needed to qualify.
A poll released in March showed 52% of registered voters supported the billionaire tax, while 33% said they opposed it. Fifteen percent were undecided. The survey was conducted by UC Berkeley’s Institute of Governmental Studies and co-sponsored by The Times.
Opponents of the measure say the proposal is an ineffective attempt to address the long-term effects of the healthcare cuts and would harm California’s economy and budget.
The state budget in California is already largely dependent on income taxes paid by its highest earners. Because of that, revenues are prone to volatility, hinging on capital gains from investments, bonuses to executives and windfalls from new stock offerings, and are notoriously difficult for the state to predict.
The proposal already triggered a fierce debate, accentuating the divide between the rich and poor in a state that’s expensive to live in.
The Service Employees International Union-United Healthcare Workers West and other supporters of the billionaire tax say that it would raise $100 billion, offsetting federal funding cuts to healthcare as well as funding education and state food assistance. The SEIU-UHWW has spent more than $31 million qualifying the proposal for the ballot.
“David won the second round against Goliath, but healthcare workers and our allies won’t quit until we protect patients from the looming California healthcare collapse manufactured by Trump and Congress,” said Debru Carthan, a spokeswoman for the Billionaire Tax Now Coalition in a statement. The SEIU-UHWW funds the group.
But supporters face strong opposition from billionaires and influential groups with deep pockets. Tech executives and other business leaders oppose the idea and some have moved to other states. Opponents say taxing billionaires would harm California’s economy while not addressing underlying financial issues.
Campaign efforts against the proposal intensified this week with the launch of a new bipartisan coalition that’s fighting the wealth tax proposal. The group, called the Californians to Protect Funding for Schools, Healthcare and Public Safety, posted a long list of opponents that include healthcare groups, labor unions, business organizations, politicians and more.
An ad released by the group calls the wealth tax “a dangerous experiment” that could cost Californians tax revenue, send jobs out of state and cut funding. Planned Parenthood, the California School Boards Assn. and labor unions are cited in the ad as opponents.
“California can’t afford the reckless wealth tax experiment,” the ad says. The California Primary Care Assn. and California Medical Assn. are funding the coalition.
Jodi Hicks, chief executive and president of Planned Parenthood Affiliates of California, said that while the group believes that the wealthy should pay their fair share of taxes, the proposal fails to get at the root of the problem.
“We believe that this particular measure is shortsighted, doesn’t have specificity and accountability. It’s volatile,” she said.
The group wants to focus on holding Congress accountable and restoring critical funding rather than finding a “temporary solution that may do more harm,” Hicks said.
The proposal also has divided progressive politicians, including influential members of the Democratic Party. California Gov. Gavin Newsom spoke out against the billionaire tax, expressing fears that those wealthy residents would move out of the state. But U.S. lawmakers such as Rep. Ro Khanna (D-Fremont) and Sen. Bernie Sanders (I-Vt.) have backed a billionaire tax, saying the rich should pay their fair share to fund essential services.
Newsom tried to stop the proposal’s supporters from placing it on the ballot because he feared it would affect the state’s finances regardless of whether voters approved it, according to a person connected to the governor who was involved in the negotiations. After these efforts failed, the governor’s advisors sought to create a broad coalition opposing the proposal in order to weaken the union’s bargaining powers.
The union proposing the billionaire tax urged Newsom on Thursday to support a bill enacting a 2% tax on the state’s billionaires and said that if he got it approved by the state Legislature, it would withdraw its proposed ballot measure by the June 25 deadline.
Saying that Newsom has vocalized how devastating the federal healthcare funding cuts will be to California’s most vulnerable residents, a coalition funded by the union argued in an open letter that their proposed stopgap measure could prevent needless patient deaths.
“Governor Newsom, you have taken bold action when California needed it in the past,” the letter read. “This is one of those moments. The ask is clear. The timeline is tight but achievable. And the payoff — preventing widespread hospital and community clinic closures and saving patient lives — is real and immediate.”
A Newsom representative bluntly opposed the proposal.
“The Governor has been clear that he is strongly opposed to a California-only wealth tax,” said spokesperson Tara Gallegos in a written statement. “The Governor supports making the wealthiest Americans pay their fair share, but this poorly designed state-only measure will defund teachers, schools, clinics, and public safety. Changing the tax rate doesn’t change this measure’s fundamental flaws that harm working Californians.”
Business executives have already poured millions of dollars into groups that oppose the billionaire tax or are promoting alternative solutions to wealth inequality.
Tech executives, venture capitalists and business leaders have donated roughly $118 million to a nonprofit called Building a Better California, according to data on the secretary of state’s website. Most of the funding comes from Google co-founder Sergey Brin, who has given more than $82 million to the group. Executives from DoorDash, Ripple, Stripe and other companies also have contributed.
The group says it supports policies such as expanding access to affordable housing, protecting innovation, requiring government transparency and securing more stable education funding.
PayPal and Palantir co-founder Peter Thiel has contributed $3 million to the California Business Roundtable, which opposes the tax. Former Google Chief Executive Eric Schmidt donated $1 million to that group as well.
California would probably collect tens of billions of dollars from the wealth tax if it passed, but it could also lose other tax revenue, a December letter from the state legislative analyst’s office said. The office also mentioned that it’s tough to predict the exact amount the state would collect due to factors that can affect a billionaire’s wealth, such as fluctuating stock prices.
California billionaires who were residents of the state as of Jan. 1 would be affected by the ballot measure if it passes. Some wealthy residents announced plans to move out of state. On Dec. 31, venture capitalist David Sacks announced he was opening an office in Austin, Texas, the same day Thiel publicized his firm had opened a new office in Miami.
Measures that could nullify the billionaire tax are another hurdle facing the initiative’s supporters. One initiative known as the Improving Transparency, Effectiveness & Efficiency in California Government Act could cancel out the billionaire tax.
It appears likely that the transparency act will also qualify for the ballot, as its supporters have said they’ve gathered enough signatures. If voters approve conflicting ballot measures, the one with more “yes” votes would take effect.
Politics
Fate of Blanche’s Nomination Could Rest on One Republican Senator
Senator John Cornyn, Republican of Texas, may have the deciding vote on Todd Blanche’s confirmation as attorney general. Even a single Republican “no” vote would block Mr. Blanche’s nomination, and the senator said after Wednesday’s meeting that he had not made up his mind.
Politics
Lindsey Graham’s final act reverberates in Senate as sister is urged to “keep pedaling”
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It was 2:35 am et Sunday.
The phone rang, yanking me out of deep slumber.
Calls like these are never good.
In the split second before I answered the phone, my mind traveled to the obvious place for any journalist who covers Capitol Hill and gets a call at that hour.
LINDSEY GRAHAM, SOUTH CAROLINA SENATOR WHO ROSE FROM SMALL-TOWN ROOTS TO GOP POWER BROKER, DIES AT 71
Former U.S. Sen. Lindsey Graham hugs his sister Darline Graham Nordone on June 1, 2015, in South Carolina. (Jessica McGowan/Getty Images)
Surely it was about former Senate Majority Leader Mitch McConnell (R-KY).
McConnell has been out of service and nowhere to be found for weeks — after being hospitalized with an unspecified illness. The internet was rife with conspiracy theories and conjecture. And, considering the dearth of information, I suspected the worst.
My longtime colleague Jodie Curtis was on the line when I picked up. Jodie is a senior figure at Fox, forced into weekend overnight assignment editor duty because of an illness. Jodie calling to tell me that Sen. Lindsey Graham (R-SC) was dead.
“Graham?” I asked incredulously. “Not McConnell?”
Emerging from my stupor, I instinctively presumed this might be about the infirm, Kentucky Republican. You’d have better odds presuming that overnight call was about McConnell than hitting an exacta wheel at Churchill Downs.
My instincts immediately kicked in.
What if this was psy-ops by the Russians, Chinese or Iranians. A rouse. A hoax. A hack.
I told my colleague to just wait a moment while we confirmed. It would be easy to get this wrong.
Back in the 1990s, lawmakers “killed” comedian Bob Hope on the House floor, prematurely announcing his death during special orders speeches. Yours truly – and everyone else in Washington – prematurely reported the death of the late Rep. Stephanie Tubbs-Jones (D-OH). She suffered from a catastrophic brain aneurism. Yet after they removed the Congresswoman from life support, she continued to live for a few hours before dying.
However, it became clear that Lindsey Graham was indeed dead. I was quickly on the air. When asked about the shock of Graham passing, I invoked a Native American adage: Death comes. And it’s always out of season.
Lindsey Graham was gone. But who would succeed him on Capitol Hill?
Think all in the family. At least for now.
Sens. Katie Britt (R-AL) and Tim Scott (R-SC) both implored the late senator’s kid sister Darline Graham to follow her brother. President Trump believed it would be a fitting tribute to the senator. So did South Carolina Gov. Henry McMaster (R) – who was in charge the appointment.
“It’s my honor to ask his sister to finish his work now,” said McMaster.
Darline Graham is a political neophyte. Lindsey Graham adopted his sister after their parents died – and Darline was a teenager.
“Lindsey has always been there for me. And now I will be there for him,” said now Sen. Darline Graham (R-SC).
Lindsey Graham was his sister’s caretaker. Now she’s the caretaker of his Senate seat until January.
But who’s next?
South Carolina has a small Congressional delegation. Rep. Joe Wilson (R-SC) quickly excluded himself from the immediate running, noting the importance of remaining in the House. Plucking one of South Carolina’s House GOP members and appointing them to the Senate is a problem for the narrow Republican majority. The Constitution bars appointments to the House. So McMaster would have diminished the GOP’s slim majority had he picked a House member to fill in for Lindsey Graham. It would take months to conduct a special election to fill the vacant House seat.
Appointing Darline Graham solves that problem.
Reps. Russell Fry (R-SC), Nancy Mace (R-SC) and Ralph Norman (R-SC) are all interested in running for the full term. South Carolina will hold a snap primary in mid August. The winner will face Democrat Annie Andrews in November. Lindsey Graham had just secured the Republican nomination for a fifth term last month.
President Trump’s influence will play an outsized role in who gets the nod. He’s already singled out Fry.
But the election will look a little different this fall. November will mark the first time since the mid-1950s that either Lindsey Graham or late, legendary Sen. Strom Thurmond (R-SC) isn’t on the ballot in the Palmetto State.
The Senate met for the first time Monday afternoon since Graham’s passing.
“Lord, we remember with gratitude his commitment to the responsibilities entrusted to him and the many ways he sought to serve the people of this country. Give comfort, strength and peace to his family, friends, colleagues and all who mourn his passing,” prayed Senate Chaplain Barry Black.
The Senate shrouded Graham’s desk with a black cloak. A bouquet of white roses rested on the desk, signifying a new beginning without a Senate titan.
“The halls of the Senate already feel empty without him,” said Senate Majority Leader John Thune (R-SD).
‘THIS IS NOT NORMAL’: AOC UNLOADS ON MCCONNELL’S PROLONGED ABSENCE
Former Sen. Lindsey Graham attends a press conference on border security at the U.S. Capitol in Washington, D.C. on December 7, 2023. (Kevin Dietsch/Getty Images)
Well wishers left notecards and flowers outside Graham’s office in the Russell Senate Office Building.
Senators praised Graham’s tenacity.
“He didn’t want to just argue about things. He wanted to actually solve things,” said Sen. James Lankford (R-OK) on Fox.
Even until the end.
Over the weekend, Graham appeared to forge a deal on a Russia sanctions measure.
“This could be well, this could well be the end of the war in Ukraine. It could put all the pressure on Russia to finally end their illegal war of aggression,” predicted Sen. Angus King (I-ME).
Lindsey Graham first won a seat in Congress in 1994 as part of the “Republican Revolution.” That’s the historic class which flipped control of the House for the first time in 40 years. Graham and Senate Armed Services Committee Chairman Roger Wicker (R-MS) are the only members from that 1994 class still serving in Congress.
Graham earned a national profile barely four years after arriving in Washington. House GOP leaders tapped Graham to serve as one of the House “managers,” prosecuting articles of impeachment for President Clinton in the Senate.
“Impeachment is not about punishment,” argued Graham before the Senate in January, 1999. “Impeachment is about cleansing the office.”
Three years after that, Graham left the House. He became one of 100 in the Senate. But his colleagues conceded that the institution felt hollow at just 99.
“I am comforted by the knowledge that in the end, he has just changed his address. And that one day, Mr. President….” said Thune on the floor, pausing for ten seconds. “We will laugh together again.”
The Leader’s voice then cracked as he fought back tears.
“Mr. President, I yield the floor,” Thune whispered.
By Tuesday afternoon, Darline Graham became the 2,022nd senator in American history. But the first to immediately succeed her brother.
“He always said that his greatest accomplishment was the way that Darline turned out,” said Britt.
“I’m glad that there will be another Sen. Graham and that Darline will serve with us,” said
Sen. Chris Coons (D-DE). “That’ll allow for some continuity.”
Graham’s passing leaves a Congressional chasm.
“It will be difficult to pass anything without Sen. Graham because he’s been such a significant voice in the Senate,” said Sen. Cynthia Lummis (R-WY).
It’s unclear if any of that will fall to the Senate’s newest member.
LINDSEY GRAHAM’S SISTER CARRIES ON LATE SENATOR’S WORK, BECOMING SOUTH CAROLINA’S FIRST FEMALE SENATOR
Darline Graham Nordone speaks during a press conference outside the governor’s South Carolina State House office in Columbia. (Grant Baldwin/Getty Images)
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Darline Graham joined her brother’s side when he briefly ran for President in 2015. She says Lindsey taught her how to ride a bike while growing up.
“He would hold on to the bicycle as I pedaled. And he’d run along beside of me. Give me a big push and shout ‘Keep pedaling! Keep pedaling!’ said the new senator. ” And then he was the one who comforted me when I stopped pedaling and fell off the bicycle.”
Today, Darline Graham is again hopping onto that bicycle to finish Lindsey Graham’s term.
You can almost hear the late senator, in his “upstate” twang shouting to his sister “Keep pedaling! Keep pedaling!”
Politics
Californians back Becerra and reject AI data centers by big margins, poll finds
Democrat Xavier Becerra holds a commanding lead in the California governor’s race in a new poll, which also shows broad voter support for a ballot proposition to reform the state’s landmark environmental law to speed up housing and infrastructure.
The survey by the Public Policy Institute of California, released Wednesday night, focused primarily on questions related to climate change and environmental policies.
The results show Californians have a strong distaste for building data centers for artificial intelligence technology, and largely favor the state’s efforts to protect the environment and cut emissions — with some exceptions.
The survey showed Becerra with a big lead over Republican Steve Hilton in the race to replace term-limited Gov. Gavin Newsom. Becerra, a longtime Democratic officeholder, received support from 61% of likely voters, compared with 36% for Hilton, a populist conservative who once advised a British prime minister.
Gubernatorial candidate Steve Hilton speaks at the National Assn. of Latino Elected and Appointed Officials conference in L.A. on Wednesday.
(Myung J. Chun / Los Angeles Times)
The results are not surprising in a state where Democratic voters significantly outnumber Republicans. The GOP has not won a statewide election since 2008.
Just 2% of likely voters said they were unsure which candidate to support in the November election. The poll results skewed heavily partisan, with more than 9 in 10 Democratic and Republican voters picking their party’s respective candidate. Most independent voters leaned toward Becerra, 60%, over Hilton, 34%.
The results are similar to data from a poll conducted just before the June 2 primary election that asked voters to pick between the two candidates. In that survey, 52% said they supported Becerra and 31% were for Hilton.
In a statement Wednesday, Hilton characterized the race as “wide open,” contending that Becerra’s support was weaker than the poll’s headline figures would indicate.
“Instead of a 36-year career politician, we need a positive, energetic problem-solver with business experience and plans to make our state ‘Califordable’ — that’s me,” Hilton said.
Becerra spokesman Jonathan Underland said in a statement that “Californians got to know Xavier Becerra during the primary, and they’re ready to make him their next governor. We’re keeping our eyes on the prize — hitting the trail every day ’til November to turn that support into votes.”
Support for CEQA reform
A ballot measure aimed at reforming the California Environmental Quality Act to speed up construction notched a strong showing in the poll.
Nearly three-quarters of likely voters, including majorities of Democrats, Republicans and independents, said that they would vote for Proposition 45. The measure would shorten windows for environmental review, public comment and legal challenges for certain housing, transportation, water infrastructure and other projects.
“At this early stage in the campaign, California voters are feeling more aligned with Democratic candidates on the environment, and it shows in the polling,” said PPIC survey director Mark Baldassare. “But strong support for Proposition 45 reveals their desire to balance environmental priorities with housing and infrastructure needs.”
Strong data center opposition
The poll found large majorities of Californians do not want new data centers to support the AI boom built in their area; 44% of adults say they “strongly oppose” such projects, and 29% “somewhat oppose” them.
The majority opposition holds across political parties, geographic regions, gender, race and income. It’s especially pronounced in the Inland Empire, where plans for a 950,000-square-foot data center came to a halt after fierce resident pushback. Three-quarters of people surveyed in that region said they oppose building new data centers.
“Every day, we are hearing about how local communities across the nation are responding to plans for data centers,” Baldassare said. “Californians have weighed in and they share this growing concern.”
Support for environmental policies — except if they cost more
The poll also shows strong, if somewhat qualified, support for California’s efforts to reduce climate-warming greenhouse gas emissions and protect the environment.
Three-quarters of adults said policies to reduce greenhouse gas emissions have been a good thing overall, and 65% said they support California leaders’ efforts to make their own environmental policies separate from the federal government.
While most respondents — 62% — said they favor a law requiring 100% of the state’s electricity to come from renewable energy sources within the next two decades, just 38% said they were willing to pay more for electricity sourced from renewables.
“With energy prices spiking and affordability a growing concern, Californians are just not willing to pay more for renewable energy,” Baldassare said. A near-unanimous majority, 96%, said the cost of energy — including gasoline, natural gas and electricity — is a problem.
Newsom’s move to ban the sale of new gas-powered vehicles in the state by 2035 also appears to have fallen out of favor. Two-thirds of Californians oppose the policy, a significant slip in approval from 2021, when a PPIC survey showed 49% supported the move.
Still, majorities of likely voters — 53% and 51%, respectively — said they approve of Newsom’s and the state Legislature’s handling of environmental issues.
At 28%, President Trump’s approval rating on the environment was much lower. In his second term, Trump has moved to slash environmental regulations, including easing pollution regulations on coal-fired power plants and pushing for oil drilling off California’s coast.
“Given this ratings gap, it’s not surprising that Californians want to see the state take the lead on climate change policy,” Baldassare said.
The survey polled 1,578 California adults, 1,003 of whom were likely voters, in English and Spanish from June 29 to July 6 and had a margin of error of 3.8 percentage points in either direction.
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