California labor unions split over proposed billionaire tax on ballot
Several California unions have voiced opposition to Proposition 40, a one-time 5% tax on billionaire assets, while SEIU California remains neutral, highlighting divisions within the labor movement.
A group of California labor unions, including the State Council of Laborers, United Domestic Workers and the California Police Chiefs Association, announced Thursday that they will oppose Proposition 40, a ballot measure that would levy a one-time 5% tax on the assets of billionaires residing in the state at the start of the year. The opposition reflects ongoing disagreements among labor groups about the proposal.
The executive board of Service Employees International Union (SEIU) California, representing about 750,000 members, voted on Wednesday to take a neutral stance. In a statement the union said that 90% of any revenue from the tax would be earmarked for healthcare, echoing concerns raised by other unions that oppose the measure.
SEIU-United Healthcare Workers West, which drafted the tax proposal, argues the levy is needed to offset an estimated $100 billion in cuts to health-care and food-assistance programs. Press secretary Renee Saldana said an internal poll shows 70% of SEIU members support the tax and that the union expects its members to vote “yes” on the measure.
United Domestic Workers President Astrid Zuniga said her union backs the idea of taxing billionaires but opposes Proposition 40 because it does not fund in-home or child-care services and lacks a sustainable financing plan. She urged members to vote “no” and called for a long-term funding strategy for vital care programs.
Opponents of the tax, including some teacher, police and firefighter unions, argue that the measure could destabilize the state budget and affect services such as education and public safety. They also warn that a billionaire tax might encourage wealthy residents to relocate out of state, citing the example of Google co-founder Sergey Brin, who moved to Nevada and contributed $82 million to a campaign against the proposition.
Governor Gavin Newsom has suggested that a federal wealth tax would be more effective, noting that moving to another state would not shield billionaires from federal taxation. The debate over Proposition 40 is expected to continue as the measure heads to the November ballot.