Bernie Sanders Makes the Case in San Francisco for Statewide Billionaire Tax
Voters are getting their first chance today to weigh in on a statewide billionaire tax that has split Democrats. That’s as proponents like Sen. Bernie Sanders, I-Vt., make their latest push to pass the measure.
Sanders, one of Proposition 40’s earliest supporters, appeared at San Francisco’s Curran Theatre on Saturday as part of a California tour promoting the tax. The event, dubbed “Ballots over Billionaires,” included former San Francisco supervisor and current candidate for state insurance commissioner Jane Kim, and U.S. Rep. Ro Khanna, who represents parts of Silicon Valley.
Sanders told a packed crowd that the initiative “deals with the most important issue facing this country,” prompting cheers and applause.
“Can the American people sustain democracy, take on the greed and power of of the billionaire class and create an economy and government that works for all, or are we destined to live in an oligarchic society where our economic and political lives are controlled by a handful of the wealthiest people in the world?” Sanders said.
The measure would impose a one-time 5% tax on individuals with a net worth of more than $1 billion who lived in the state on Jan. 1, 2026. Ninety percent of the tax’s revenue — projected to be tens of billions of dollars — would go toward healthcare. The rest would be used for food assistance and education-related programs.
The initiative has won the support of the state’s Democratic Party, and a recent poll shows it as slightly favored by likely voters. Proponents like Sanders say the tax is necessary to support the state’s healthcare system following federal cuts related to the so-called One Big Beautiful Bill Act.
But Gov. Gavin Newsom and both remaining candidates for his seat, Republican Steve Hilton and Democrat Xavier Beccera, have come out in opposition.
Some opponents say it would actually mean a decrease in revenue because it could force billionaires away. Others, like the Planned Parenthood Affiliates of California and the California Medical Association, have raised concerns about how the money will be distributed and how much discretion lawmakers will have about its use.
Nancy Tung, chair of the San Francisco Democratic Party, said Saturday at a virtual event hosted by the No on 40 Coalition that every Democrat in the state wants billionaires to “pay their fair share,” but that Prop 40 is not a stable or lasting solution to federal cuts.
Former U.S. Rep. Katie Porter echoed Tung’s comments at the event, saying that people are “understandably desperate” for a solution to healthcare challenges.
“Prop 40 promises to do that, but it absolutely does not,” Porter said. “In fact, it locks in a lot of the problematic aspects of our current healthcare system.”
Even if voters pass the measure, it could be moot. Two other initiatives on the ballot are Propositions 41 and 42, direct responses to Proposition 40 funded by billionaires like Google cofounder Sergey Brin.
Prop 41 would prohibit new state taxes that exempt their revenues from the state spending limit. Prop 42 would prohibit retroactive taxes and new taxes on financial assets and personal property. If either one passes and receives more votes than Proposition 40, the billionaire tax would be nullified.
Sanders, who’s also urging people to oppose Prop 41 and 42, will finish off his support tour for the measure and progressive candidates in the state in Los Angeles tonight.
KQED’s Janea Melido contributed to this report.