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A tax reform measure designed to tax the ultra wealthy in order to help fund Medicaid has been added to the ballot in California. The measure was developed by Professor David Gamage along with co-designer Professor Darien Shanske of the UC-Davis School of Law.
The measure proposes a one-time, emergency 5% tax on billionaires in the state of California. The funds would be used to help prevent a statewide healthcare system collapse and to stop emergency rooms from closing their doors due to pending cuts to federal Medicaid funding.
“With federal tax cuts for the ultra-wealthy now squeezing health budgets, Californians need a practical way to fund care,” Professor Gamage said. “This measure protects health care without raising taxes on middle-class families—by asking billionaires to contribute a small, one-time share.”
The proposed tax would be a one-time tax for tax year 2026, which will generate $100 billion in additional revenue for the State of California in years 2027 to 2031. The measure will be added to the California ballot and will be voted on by citizens in November 2026.