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What is the California Billionaire Tax Act? Is it actually happening?

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What is the California Billionaire Tax Act? Is it actually happening?


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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.

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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.

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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.

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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:

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  • 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.



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California dad charged with incest after allegedly assaulting daughter; DA may drop case

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California dad charged with incest after allegedly assaulting daughter; DA may drop case


When Makayla Rene Settles turned 18, she left Raleigh, North Carolina, for a fresh start. She moved to Moorpark, California, to live with her biological father, Stephen Vincent Chavez, with plans to attend college and build a new life. Two days after she arrived, her family says she called terrified and asking for help.

“It was just the fear in her voice, her crying. I didn’t need details. I knew something was wrong, and I said, ‘I’m on the way,’” said Carolina Sandoval, Makayla’s mother.

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Carolina says she rushed to Chavez’s home. When she saw her daughter, she was devastated.

“She’s barely walking,” Carolina said. “My brother picks her up and hugs her.”

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Makayla was taken to a hospital, where a rape kit was performed. According to the family, the results came back positive for Stephen Vincent Chavez’s DNA. He was arrested that same night and charged with incest, taking advantage of a position of trust, and providing alcohol to a minor.

Her cousin, Crystal Sandoval, was in disbelief. She said, “I was screaming, I was crying. I just kept thinking, why would he do that to her? This is something she could not come back from.”

Crystal was right. Five months later, Makayla Rene Settles died by suicide.

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“If I’m being honest, it feels like I handed my daughter to the devil,” said Carolina.

On the night Makayla was taken to the hospital, Sandoval says Chavez sent her a text message. It read, “I’m never drinking liquor again. I don’t want that blackout to happen again.”

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Now, the family says they’ve been dealt another devastating blow. According to Crystal Sandoval, the Ventura County DA’s Office has told them the case may not go to trial because Makayla is no longer alive to testify.

“The DA was essentially saying, ‘We don’t know if we have a case because she’s no longer here,’ and when she told me that, I immediately said, ‘No, we’re not going to let that slide,’” said Crystal.

Determined to get justice, Crystal took to social media. Her videos went viral, drawing widespread outrage and prompting hundreds to promise to show up to Chavez’s next court hearing, scheduled for April 21 at the Ventura County Courthouse.

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“It was like he took her sunshine away and just kind of broke her soul,” Crystal said.

The Ventura County District Attorney’s Office issued the following statement:

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“We have seen the posts online and want to let the public know that our Sexual Assault Unit continues to prosecute the defendant for this extremely serious crime. This case has been filed since July 2025, when the evidence supported the filing of felony charges. As with any case, prosecutors filed charges based on the evidence. The court sets bail. Our office successfully moved to increase bail to $250K in July 2025 when the case was filed. The defendant requested that bail be reduced, but we successfully argued against that. The defendant has since posted $250K bail and is out of custody. With respect to the upcoming hearing, the April 21 date is an early disposition conference. This is a standard pretrial proceeding where the court and parties address the status of the case and set future dates as appropriate.”

Despite that statement, the family says they have already been told a trial is not guaranteed, and they are not backing down. Chavez has pleaded not guilty. His next court hearing is April 21 at 8:30 a.m. in Courtroom 14 at the Ventura County Courthouse.

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California’s leading GOP candidate for governor reacts to Swalwell’s exit from race | CNN Politics

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California’s leading GOP candidate for governor reacts to Swalwell’s exit from race | CNN Politics


California’s leading GOP candidate for governor reacts to Swalwell’s exit from race

Republican Gov. candidate Steve Hilton joins CNN’s Dana Bash after one of his opponents, Rep. Eric Swalwell, exited the California governor’s race amid sexual misconduct allegations. “We desperately need change. And no Democrat can provide that,” Hilton says.



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AB 2276 pilot targets seven California counties with speed-limiting devices for speeders

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AB 2276 pilot targets seven California counties with speed-limiting devices for speeders


A new effort to crack down on dangerous drivers in California is gaining attention as lawmakers push forward legislation aimed at repeat speeders.

Assembly member Esmeralda Soria has introduced a bill that would require certain drivers with multiple speeding offenses to install a device in their vehicles that automatically limits how fast they can go. The measure, known as the “Stop Super Speeders Act” (AB 2276), is designed to improve road safety and prevent deadly crashes.

The program could first roll out as a pilot in several counties, including Fresno, Kern, Los Angeles, San Bernardino, San Diego, Santa Clara, and Shasta. While the proposal was initially intended to be implemented statewide, consultants recommended starting with a smaller pilot program.

The legislation is driven in part by tragic cases like that of Paul Martinez, who was killed at just 21 years old after being struck by a speeding driver in Fresno. His father, Joe Martinez, says the loss is something he lives with every day.

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“Being 21 years old and suddenly your entire life, dreams, goals—everything—is just wiped out by the distraction of one person who was speeding,” he said. According to reports, the driver who hit Paul was traveling 54 miles per hour in a 40 mph zone.

Traffic safety remains a serious concern in Fresno. Data from Smart Growth America ranks the city as the seventh worst in the nation for pedestrian deaths.

“I do not want to see another father who grieves every single day because he lost his child to someone driving recklessly,” Soria said.

Under AB 2276, judges would have the authority to require repeat offenders to install Intelligent Speed Assistance (ISA) devices in their vehicles. The technology functions similarly to cruise control but automatically adjusts a car’s speed based on posted limits using GPS data.

“Once the technology is installed, it knows the speed limit of the neighborhood or freeway and makes adjustments accordingly,” Soria explained. “This is for those folks who haven’t learned their lesson from simply getting a ticket.”

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However, the proposal has drawn criticism from some groups. Opponents argue that the bill’s language is too broad and could create unintended safety risks. Critics say there are situations where drivers may need to accelerate quickly to avoid danger, and limiting speed could make those situations more hazardous.

Supporters counter that the bill is about accountability and protecting lives on the road.

“You would think this is a no-brainer bill,” said Martinez, “It holds repeat offenders accountable.”

The bill is still in the early stages of the legislative process. Its next step is review by the Assembly Appropriations Committee.



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