Politicians and state leaders from the world’s fourth-largest financial system prefer to say, “As goes California, so goes the nation.”
Maybe that’s the reason a proposed wealth tax on billionaires that would find yourself on the November statewide poll isn’t solely being watched carefully nationwide, however one of many nation’s most progressive U.S. senators — who lives 1000’s of miles away — is actively campaigning for its passage.
Sen. Bernie Sanders, an unbiased from Vermont who beforehand mentioned he desires to introduce a nationwide wealth tax, headlined a marketing campaign kickoff rally for the proposed tax in Los Angeles on Wednesday, Feb. 18.
Learn extra: California’s politicians and ultra-wealthy are divided over a proposed billionaire tax
In a roughly 30-minute speech, Sanders advised a packed crowd on the historic Wiltern theater in L.A.’s Koreatown that the rally and proposed wealth tax have been greater than merely about economics and tax coverage.
U.S. Sen. Bernie Sanders speaks throughout a rally in help of a proposed billionaires tax in California on the Wiltern in Los Angeles on Wednesday, February 18, 2026. (Picture by Drew A. Kelley, Press-Telegram/SCNG)
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U.S. Sen. Bernie Sanders speaks throughout a rally in help of a proposed billionaires tax in California on the Wiltern in Los Angeles on Wednesday, February 18, 2026. (Picture by Drew A. Kelley, Press-Telegram/SCNG)
At its core, he mentioned, the difficulty was about letting billionaires know that the true energy nonetheless lies with the American individuals.
“We’ve bought some dangerous information for them — beginning proper right here in California,” Sanders mentioned as the group erupted into cheers and applause. “These billionaires are going to study that we’re nonetheless residing in a democratic society the place the individuals have the ability.”
The proposed tax is spearheaded by the Service Workers Worldwide Union-United Healthcare Staff West to prop up California’s well being care system following federal funding cuts below the Trump administration.
Sanders’ resolution to wade into the controversy alerts how the controversial tax proposal is figuring into nationwide conversations about whether or not the ultra-wealthy ought to pay extra to help authorities companies, together with to maintain social security nets from collapsing.
On the identical time, the help of the proposed poll initiative from Sanders, a former presidential contender, places him at odds with Gov. Gavin Newsom, a possible 2028 presidential hopeful who has raised considerations that the tax would drive California’s wealthiest to maneuver — which in flip may imply a lack of earnings tax and financial and revolutionary output for the state.
Proponents say a one-time wealth tax of as much as 5% on people and trusts with belongings value greater than $1 billion would assist backfill federal funding cuts to well being care on account of President Donald Trump‘s so-called “Massive Stunning Invoice,” the large tax and spending cuts invoice that Trump signed in July.
They are saying the state’s wealthiest have benefited from main tax breaks and that it’s solely proper for them to pay to prop up the well being care system.
The proposed wealth tax, which sponsors of the initiative estimate would apply to about 200 billionaires, would generate $100 billion for the state and save California’s well being care system from collapsing by holding hospital emergency rooms, clinics, nursing houses and different well being care services open; holding well being care employees employed; and stabilizing medical insurance protection and premiums for Californians, proponents say.
In response to SEIU-UHWW, almost 15 million low-income Californians, together with greater than half the state’s kids and a couple of.2 million seniors and people with disabilities, depend on Medi-Cal, which stands to lose over $19 billion yearly in federal funding.
Ninety % of the income from the wealth tax would pay for well being care, with the remaining 10% earmarked for training and meals help applications.
“If we don’t act, we’re going to see sufferers undergo,” Suzanne Jimenez, chief of workers at SEIU-UHWW, mentioned on stage.
“If we don’t act,” she added, “our mates and our households must drive twice as far, must wait twice as lengthy for the life-saving care that they’re going to want. And for what? In order that billionaires can personal one other yacht?”
Sanders’ look at Wednesday’s rally — the place some within the enthusiastic crowd waved indicators that learn “Cease the Healthcare Collapse” — was a chance for SEIU-UHWW to construct momentum for its marketing campaign and collect extra signatures. Supporters of the wealth tax want to gather almost 875,000 legitimate signatures from registered voters by June 24 to qualify it for the November poll.
The rally additionally featured remarks by union members from UNITE HERE Native 11 and Teamsters Native 1932. Rage Towards the Machine guitarist Tom Morello carried out a sequence of songs earlier than Sanders took the stage.
Opponents of the proposed tax, in the meantime, are working to thwart the efforts of the billionaire tax marketing campaign.
Three different poll initiatives are being floated that would invalidate the billionaire tax proposal and even preserve it off the poll altogether. A few of these counter-efforts are well-funded and backed by rich tech entrepreneurs.
For instance, Cease the Squeeze, a committee working to defeat the proposal, on its web site described the proposed billionaire tax as “stuffed with unintended penalties” and urged voters to “be part of Governor Gavin Newsom” and others in rejecting the initiative. The committee’s prime funders embody investor Daniel Tierney and enterprise capitalist Ron Conway.
The California Enterprise Roundtable additionally opposes the proposed wealth tax. Rob Lapsley, the group’s president, known as it “a tax nobody can afford.” When entrepreneurs or different excessive earners depart the state, it interprets to fewer jobs, much less investments and a weaker tax base, he mentioned.
“Bernie Sanders flew in from Washington to lecture Californians about methods to run our financial system — and he’s bringing the identical out-of-touch playbook that’s already made our funds dangerously risky and depending on a shrinking handful of taxpayers, whereas driving up the price of residing for all California residents,” Lapsley mentioned in a press release.
Supporters of the billionaire tax proposal, in the meantime, are bracing for a combat on the poll field.
Our Revolution, which payments itself because the nation’s largest grassroots unbiased political organizing group and advocates for progressive insurance policies, introduced Wednesday it plans to mobilize its 1.2 million contacts in California and associate with allied teams “to construct a broad, statewide signature assortment infrastructure.”
“Wealth inequality and company corruption are the defining points in our democracy, and our base is aware of it,” Joseph Geevarghese, govt director of Our Revolution, mentioned in a press release.
“The California Billionaires Tax Act is about shifting energy away from oligarchs and towards working households,” he added. “Leaders like Bernie Sanders are barnstorming the state as a result of this combat issues.”
Regardless of Sanders’ reputation in California — he received a plurality of the votes on this state in the course of the 2020 major presidential elections — at the very least one political observer isn’t so positive that the opinion of an out-of-state politician, even one with Sanders’ political cachet amongst progressives, will maintain sufficient sway to have an effect on the end result on the poll field.
Veteran Democratic political guide Garry South famous that in 2016, the marketing campaign for a prescription pricing poll initiative had Sanders fly out to endorse Proposition 61, but it nonetheless failed.
“Gavin Newsom in the end may have much more to do with the end result than Bernie Sanders,” South mentioned.
He added: “I simply don’t suppose Californians are significantly vulnerable to take heed to what some out-of-stater has to say a couple of poll measure that impacts solely California.”
In the meantime, again at The Wiltern on Wednesday night time, Sanders roused the group to its toes as he advised them they may set the instance for standing as much as the wealthy and highly effective.
“The individuals in California can present the individuals of America, and actually individuals all through the world, that after we stand collectively, we are able to tackle the oligarchs and the billionaires,” Sanders mentioned.
“Let’s go ahead collectively. Let’s win this factor,” he mentioned as he walked off the stage to John Lennon’s “Energy to the Folks.”
Sanders’ journey out west is a part of a multi-day tour via the state.
His schedule contains conferences with leaders from the bogus intelligence trade. Sanders additionally plans to seem at a Friday city corridor within the Bay Space with Rep. Ro Khanna, a Democrat from Silicon Valley, to debate the way forward for AI.
