Union Leader Dave Regan Pushes for 5% Tax on California Billionaires

Dave Regan, President of SEIU-UHW, is the architect behind a proposal to levy a one-time 5% wealth tax on approximately 200 California billionaires, estimated to generate $100 billion over five years. The proposal faces strong opposition, with warnings of capital and entrepreneurs leaving the state.

5% Tax Proposal Targets 200 California Billionaires

CALIFORNIA — The individual behind the proposal to levy a 5% wealth tax on billionaires in California is not Governor Gavin Newsom or any elected official, but Dave Regan — President of the SEIU-United Healthcare Workers West (SEIU-UHW) union since 2011.

The proposal calls for a one-time 5% tax on the total assets of approximately 200 billionaires residing in the state. Supporters estimate that this measure could generate up to $100 billion within 5 years. The initiative needs to collect 874,641 signatures to qualify for the November ballot.

Concerns Over "Capital Flight" from California

Proponents argue that revenue from the billionaire tax could offset budget shortfalls in healthcare and education following federal adjustments. However, the California Legislative Analyst's Office warns that while the measure could generate significant short-term revenue, it might lead to "hundreds of millions of dollars each year" in lost revenue as wealthy individuals move assets or leave the state.

Some tech billionaires named in the debate include Google co-founders Sergey Brin and Larry Page, along with investor Peter Thiel. According to reports, some have already moved offices or assets to lower-tax states like Florida. Sergey Brin, in particular, could face a tax bill of up to $12 billion if the proposal is passed.

Governor Newsom and Democrats Distance Themselves

Governor Gavin Newsom has previously expressed his disagreement with the proposal, suggesting that most working-class people do not support it either. Speaking at a conference in New York, he remarked that the initiative came from "an individual representing a single union."

Some political sources in Sacramento suggest that the initiative could harm California's investment climate and long-term revenue.

$75 Million for 45 Ballot Initiatives

SEIU-UHW represents approximately 120,000 healthcare workers in California. Since 2012, the union has spent around $75 million on 45 different ballot initiatives. Many proposals were not approved by voters, but the organization believes they have contributed to promoting minimum wage increases and expanding the Medicaid program.

Spokesperson Nathan Selzer asserts that the billionaire tax initiative is not a political maneuver, but rather "the only current solution to close the state's financial gap."

Past Allegations

Dave Regan's name once appeared in a civil lawsuit filed by former union employees, describing a toxic work environment and misconduct by senior leadership. The lawsuit was privately settled, and the union stated that Regan was not a defendant in the case.

The Political Battle Continues

Supporters view the proposal as a way to force the ultra-rich to share budget responsibilities. Opponents fear California could "kill the golden goose" by driving entrepreneurs and capital away permanently.

The political battle surrounding the 5% billionaire wealth tax proposal is likely to intensify as it enters the signature-gathering and voter advocacy phase for the November election.