Washington DC - Senator Bernie Sanders has backed a California wealth tax on billionaires opposed by the state's Democratic Governor Gavin Newsom.

"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 said in a statement.

"This initiative would provide the necessary funding to prevent over 3 million working class Californians from losing the health care they currently have as a result of Trump's so-called Big Beautiful bill."

The proposed ballot initiative would impose a one-time 5% tax on the wealth of the around 200 billionaires residing in California. Those individuals would have the option of paying the sum all at once or over a span of five years.

If implemented, the measure would likely generate over $100 billion in revenue that could mitigate the damage of the Trump administration's massive federal budget cuts, including to health care.

"In my view, in a democratic society, we cannot continue to tolerate a rigged economy in which 60% of our people live paycheck to paycheck – struggling to pay for housing, food and health care while the top 1% now owns more wealth than the bottom 93%," Sanders insisted.

The Vermont independent added that he would soon be introducing legislation for a national wealth tax on billionaires.

If supporters succeed in gathering enough signatures, the billionaire tax could go before voters in November 2026.

The New York Times reported last week that Newsom has begun raising money for a committee to oppose the measure, which was put forward by the Service Employees International Union-United Healthcare Workers West.

A spokesperson told the outlet that the governor opposes "state-level wealth taxes" because they encourage people who would be affected to move out of state.

Tech venture capitalist Peter Thiel and Google co-founder Larry Page, with whom Newsom is close, have already indicated they are considering leaving California due to the proposed tax.

The ballot measure would apply retroactively to anyone who resides in the state as of January 1, 2026.

"From a moral, economic and political perspective, our nation will not thrive when so few own so much while so many have so little," Sanders said. "We need a tax system that demands that the billionaire class finally pays their fair share of taxes."