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Tax & Revenue
Initiative 25-0024A1
One-Time Wealth Tax for Healthcare & Food Assistance
Initiative Statute
What This Does in Plain English
This measure would charge a one-time 5% tax on Californians who hold more than $1 million in assets — things like stocks, real estate, business interests, and retirement accounts. The money raised — estimated at tens of billions of dollars — would go mostly toward healthcare programs, with a smaller portion going to food assistance or education.
The Problem It's Solving
- California has millions of uninsured or underinsured residents who struggle to afford medical care.
- Food insecurity remains high across the state, especially among low-income families and seniors.
- Wealth has become increasingly concentrated at the top, while public programs face funding shortfalls.
What Changes
- Who pays: Individuals and trusts with more than $1 million in "covered assets" — a broad category including financial accounts, real estate, and business interests.
- Tax rate: 5%, charged once.
- Revenue breakdown: 90% to healthcare programs, 10% to food assistance or education.
- Temporary: This is a one-time tax, not an ongoing annual charge.
Who Is Behind It
Backed by progressive advocacy groups focused on healthcare access and economic equality. No single major corporate funder is publicly identified.
Who It Affects
- Californians with over $1 million in total assets (not just income)
- Trusts and estates holding covered assets above the threshold
- Residents who benefit from expanded healthcare and food programs
Arguments For
- Raises significant funds for critical public health and food programs without taxing ordinary workers.
- A one-time levy is less burdensome than a recurring annual wealth tax.
- Addresses growing wealth inequality by asking the wealthiest to contribute more.
Arguments Against
- Could trigger capital flight — wealthy individuals moving assets or themselves out of California.
- Valuing non-liquid assets (like private businesses or real estate) for tax purposes is complex and contested.
- Constitutional questions exist around wealth-based taxation in California.
Fiscal Impact
Estimated to raise tens of billions of dollars in state revenue over several years as the one-time tax is collected and processed. Significant boost to healthcare and food assistance funding.