VERMONT December 30, 2025 – Vermont Senator Bernie Sanders has thrown his strong support behind a grassroots ballot initiative in California that proposes a one-time 5% wealth tax on residents worth over $1 billion, estimated to affect around 200 individuals and raise approximately $100 billion. In a recent social media statement, Sanders called the proposal a “model” for the nation amid rising wealth inequality and potential cuts to healthcare programs.
“At a time of unprecedented and growing wealth and income inequality, I strongly support the grassroots effort in California to impose a 5% wealth tax on 200 billionaires worth $2 trillion,” Sanders wrote. “This initiative would provide the necessary funding to prevent over 3 million working class Californians from losing the health care they currently have.”
The initiative, known as the 2026 Billionaire Tax Act, is sponsored by healthcare unions and aims to offset federal funding shortfalls in Medicaid and other social services. Proponents argue it could generate funds to protect vulnerable populations from losing coverage due to recent policy changes.
Sanders went further, announcing plans to introduce federal legislation for a national wealth tax on billionaires. “This is a model that should be emulated throughout the country, which is why I will soon be introducing a national wealth tax on billionaires,” he stated.
The senator criticized the current economic system, highlighting what he described as excessive greed among the ultra-wealthy. “We can and we should respect innovation, entrepreneurship and risk-taking, but we cannot respect the extraordinary level of greed, arrogance and irresponsibility that is currently being displayed by much of the billionaire class.”
Citing data on inequality, Sanders noted that 60% of Americans live paycheck to paycheck while the top 1% owns more wealth than the bottom 93%. He referenced a recent RAND Corporation study showing $79 trillion in wealth redistributed from the bottom 90% to the top 1% over the past 50 years.
Sanders also praised California Congressman Ro Khanna, who represents Silicon Valley and has endorsed the state initiative. Khanna has faced backlash from tech leaders, some of whom have threatened to leave the state or support political challengers against him. In response, Khanna stated: “We cannot have a nation with extreme concentration of wealth in a few places, but where 70% of Americans believe the American dream is dead and health care, childcare, housing, education is unaffordable… a billionaire tax is good for American innovation, which depends on a strong and thriving American democracy.”
The California measure requires hundreds of thousands of signatures to qualify for the 2026 ballot. If successful, it could face legal challenges, but supporters view it as a critical step toward addressing inequality.
Sanders concluded: “From a moral, economic and political perspective, our nation will not thrive when so few own so much while so many have so little. We need a tax system that demands that the billionaire class finally pays their fair share of taxes. Yes. We need a wealth tax on billionaires.”
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