If the Billionaire Tax Act passes on November’s ballot, it will provide assistance to programs used by college students — such as SNAP and federal public university funding — but critics warn about economic instability by pushing investors out of California. The proposed ballot measure is a one-time 5% tax on billionaire wealth in order “to support health care, education and nutrition in California.”
The initiative must receive about 875,000 signatures by June 24 to appear on the November ballot, according to the California Secretary of State’s website.
California is home to around 200 billionaires — the highest concentration of any state — with collective net worths of $2 trillion in wealth. The act would tax assets and personal property, including shares of capital stocks and bonds, which would generate about $100 billion in tax revenue.
How could the billionaire tax affect innovation?
Figures like Gov. Gavin Newsom are actively fighting back against the proposed billionaire tax, arguing that such a tax could harm the state’s status as a breeding ground for innovation.
The billionaire tax can soak up the damage caused by the nationwide healthcare cuts but only temporarily. Billionaires’ potential relocation would only exemplify negative economic effects, which could result in a hundreds of millions of dollars or more each year, according to the California Legislature’s nonpartisan fiscal and policy advisor’s December 2025 review.
“This would mean less money for the state’s general budget that supports education, health care, prisons, and other services” the report said. “While there would be money from the wealth tax to pay for some of these things, like health care, that money would be temporary.”
Evan Upton, an electrical engineering junior, believes a billionaire tax is a well-intentioned mechanism for providing assistance to low-income earners.
However, billionaires are a tangible part of California’s economy with the top 1% making up half of California’s tax revenue, Upton said. He noted that Silicon Valley is a major crux of California.
“We want our state to be technologically advanced because that’s where all the high-paying jobs are,” Upton said.
Civil engineering junior Aydin Gulle views California tech innovation as independent from a steady billionaire presence.
“I don’t think billionaires are equated to industry, per se,” Gulle said. “California has such a strong atmosphere for tech innovation, regardless of the billionaires themselves.”
How would the billionaire tax affect healthcare?
Ninety percent of the tax’s revenue would go to the State Treasury’s Billionaire Tax Health Account, which would essentially hold the money until it was implemented to support healthcare programs, hospitals and nursing homes.
The Trump Administration passed its One Big Beautiful Bill Act on July 4, 2025 to cut taxes for working families making between $15,000 and $30,000 by 21%. However, the act decreases funding to Medicaid and adds difficulty to its enrollment, which leads to significant cuts as a way of offsetting the loss in tax revenue.
The SEIU-United Healthcare Workers West proposed the billionaire tax to combat the cuts in Medicaid, according to a CalMatters report.
Mercedes Ramos, a health and society junior, believes the enactment of a billionaire tax is of ethical importance for all low-income families and individuals.
“If 5% of the tax revenue is going to the middle and low-income earning class, then so be it,” Ramos said. “I do not believe there is such a thing as an ethical billionaire.”
How would the billionaire tax affect SNAP recipients?
The remaining ten percent of revenue would go to the Tax Education and Food Assistance Account. The money from these accounts would fill gaps in Medi-Cal, public education and the Supplemental Nutrition Assistance Program.
The bill cites that Medi-Cal — healthcare coverage for those with disabilities, low-incomes, children and seniors — faces federal funding threats alongside SNAP. CalFresh — the state’s division of SNAP — is dedicated to providing food security to all residents of California who are in need.
Between 440,000 to 750,000 college students are eligible for CalFresh, but only one-fifth receive the benefits, as previously reported by CalMatters.
“My benefits were delayed for about a week when I was late turning in my semi-annual report,” Catherine Mispagel said. “They were reinstated once I was approved.”
Mispagel, a statistics junior, only received $20 per month over the summer when she had a full-time job. Once her summer job ended, she was approved for an increased $298 per month for the school year, she said.
This year, CalFresh raised the maximum amount of money a recipient could collect per month by $6, according to the Department of Public Social Services.
“I do think SNAP is a great program and I think billionaires should get taxed,” Mispagel said.
Zoe Goldstein, an English senior, only receives $60 in SNAP benefits, so she also visits Cal Poly’s food pantry to help reach her nutritional needs. She is unsure if the billionaire tax is the best option.
“I think overall the billionaire tax could be a good step towards more mindful and equitable taxation,” Goldstein said. “But I don’t think it’s necessarily the solution to the way our government distributes wealth.”
