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The union backing California’s billionaire tax initiative has expressed willingness to withdraw the proposal from the November 2026 ballot if Governor Gavin Newsom supports a smaller wealth tax. SEIU-United Healthcare Workers West, which spearheaded the initiative, aims to impose a one-time 5% tax on residents with a net worth of at least $1 billion to fund essential services like healthcare and education. The development indicates a potential compromise, suggesting the initiative could be replaced by a legislative solution rather than proceeding to a public vote. This move comes amid Newsom’s efforts to block the measure, potentially reshaping the market’s outlook on the likelihood of the original tax proposal passing.
Key Takeaways
The potential withdrawal of the billionaire tax ballot measure appears to decrease the likelihood of its passage, impacting market odds significantly.
Markets suggest that a legislative compromise supported by Governor Newsom could replace the need for a public vote on the original measure.
