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Hollywood Sat Out the Billionaire-Tax Fight. Its Workers Could Pay the Price.
California’s proposed one-off tax on billionaires appeared headed for defeat, with the “no” vote leading by more than 11 points after about half the votes had been counted. The result would remove a possible source of funding for healthcare programmes, including support that could have helped low-income entertainment workers losing access to employer or union insurance.
The proposal would have charged an estimated 200 Californians with assets above $1 billion a one-time 5 per cent tax to help offset federal healthcare cuts. More than $350 million was spent on the campaign, with opponents and allied groups accounting for over 96 per cent; meanwhile, actors on the SAG-AFTRA plan have struggled to meet its $28,000 earnings threshold, and about 22 per cent of workers in arts, entertainment, recreation and accommodation were enrolled in Medi-Cal in 2023.
In short
- California’s billionaire tax was likely to fail.
- The proposal could have supported healthcare funding.
- Hollywood workers face growing insurance gaps.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters could argue that a one-off 5 per cent levy on a small number of billionaires was a proportionate way to raise money for healthcare as federal cuts threatened vulnerable residents. They would point to entertainment workers losing access to employer or union coverage, and to the campaign spending imbalance, as reasons the measure deserved a fair hearing and could have helped those with few alternatives.
The case against
Opponents could argue that a steep, one-time tax on wealth might prompt billionaires to move assets or residency, making the revenue uncertain and potentially harming California’s wider economy. They could also question whether this measure was a reliable or lasting way to fund healthcare, and favour other funding choices that do not depend on a narrow group of taxpayers.
Explained simply
California funds healthcare through a mix of state and federal money. Medi-Cal is the state’s public health insurance for people on low incomes, while many entertainment workers get cover through an employer or a union plan such as SAG-AFTRA’s.
Union health plans often require members to earn a minimum amount to qualify. When work is irregular, some actors and other entertainment workers may fall short and lose cover; Medi-Cal can be another source of insurance for those who meet its rules.
The proposed tax was a one-off charge on the assets of Californians worth more than $1 billion, intended to help offset federal healthcare cuts. Its supporters said the money could help fund healthcare programmes, while opponents campaigned against the measure; the debate connected state tax policy with how workers might access health cover.