Popular measure would prevent hospital and ER closures across California driven by billionaire tax cuts passed in July 2025

LOS ANGELES, CA — With a fiery speech at the iconic Wiltern Theatre in Los Angeles, U.S. Senator Bernie Sanders joined healthcare workers and other allies to kick off the campaign for the California Billionaire Tax Act. The event also featured an inspiring performance from Tom Morello of Rage Against the Machine fame. 

Flanked by frontline healthcare workers and other community and labor supporters, Sanders addressed thousands of Californians as they rallied in support of a one-time, emergency tax on billionaires to keep hospitals and ERs open and save the state’s healthcare system from collapse.   

“At a time of unprecedented and growing wealth consolidation and income inequality, I strongly support the grassroots effort in California to impose this reasonable and necessary 5% wealth tax on about 200 California billionaires,” said U.S. Senator Bernie Sanders. “This initiative would provide the necessary funding to prevent over three million working class Californians from losing the healthcare they currently have — and would help prevent the closures of California hospitals and emergency rooms. It should be common sense that the billionaires pay just slightly more so that entire communities can preserve access to life-saving medical care. Our country needs access to hospitals and emergency rooms, not more tax breaks for billionaires.”

The Rock and Roll Hall of Famer and Grammy award winning Morello took the stage for a surprise performance, bringing his decades-long fusion of music and activism to a movement centered on economic justice — and to protecting the lives of Californians who stand to risk access to vital healthcare services and emergency rooms due to looming federal Medi-Cal cuts.

Widely regarded as one of the most innovative guitarists of his generation, Morello has spent more than three decades using his platform to support labor organizing, civil rights, and progressive political movements. His participation underscored the broad and growing momentum behind the California Billionaire Tax Act.

“Massive federal healthcare cuts could force many of our local hospitals and emergency rooms to close their doors forever — all because billionaires insist on paying lower tax rates than the rest of us,” said Suzanne Jimenez, Chief of Staff to a California-based union of frontline healthcare workers, SEIU-UHW. “If we don’t act, hospitals and ERs across California will close, and patients will suffer. If we don’t act, millions of people will lose access to the healthcare services they rely on. If we don’t act, our neighbors, our patients, and our loved ones will have to drive twice as far, and wait twice as long, to receive emergency care. And for what? So billionaires can have another yacht? I don’t think so!”

The event also featured remarks from union members of Teamsters California, UNITE HERE Local 11, and the Committee of Interns and Residents (CIR-SEIU), all of whom have endorsed the proposed California Billionaire Tax Act.

“My local union, Teamsters Local 1932, proudly represents 2,000 Amazon Teamsters warehouse workers in the Inland Empire. Many rely on Medi-Cal to cover their dependents because they cannot afford to cover their families on the healthcare plans Amazon offers them. And they work for the second largest employer in the country and the fifth richest man in the world whose worth is more than $200 billion dollars,” said Nidal Rafeedie, respiratory therapist and Teamsters member. “Healthcare is not just a budget line item. It is the difference between stability and collapse for millions of families. We have already lived through enough instability. Let’s not create another one.”

“My union, UNITE HERE Local 11, endorsed the California Billionaire Tax because we know that we can’t let the billionaires get away with destroying our hospitals and clinics with their greed,” said Lisandro Preza, a cashier and UNITE HERE Local 11 member. “We must work together to pass this tax and ensure that our healthcare services are protected.” 

Right now, California’s billionaires pay much lower tax rates than what working families pay out of every paycheck. And soon, massive federal healthcare funding cuts will push key parts of the California healthcare system to the brink of collapse, or worse. Local hospitals and emergency rooms could shut their doors forever because billionaires insist on paying less than the rest of us. 

“We go into medicine to prevent suffering, but we’re too often left managing preventable crises and uprooting people from the only communities they know,” said Dr. Jackline Lasola, OB-GYN physician and member of the Committee of Interns and Residents/SEIU. “We already have a healthcare crisis in this country, which is what makes the avalanche of cuts that will close hospitals, ERs, and — my dear — Labor and Delivery, across California even more devastating. At a time when this administration is gutting our healthcare, our safety nets, and our basic public services, we’re here to take action and to protect Californians.” 

In November, California voters will at last have a chance to make billionaires pay their fair share to help prevent that, through a commonsense ballot initiative that places a one-time 5% tax on the wealth of approximately 200 billionaires who reside in the Golden State. Ninety percent of that funding will go to offset Medi-Cal cuts in order to prevent ER and other service closures, and 10% will go toward funding food assistance and public education. The proposed tax would not be on new income, but would rather tax assets that, according to experts, would otherwise go untaxed altogether. 

At the rally, local healthcare workers and union members shared their stories about the impending crisis facing California hospitals if the California Billionaire Tax Act were not passed by voters this fall. From fears about patient safety due to department and hospital closures, to rising healthcare premiums for all Californians, healthcare workers took the stage, calling on attendees to rally, volunteer, and vote to hold billionaires accountable. 

Sanders joins a growing list of unions, elected leaders, and community organizations supporting the proposed tax on billionaires. Recently, the 250,000-member strong Teamsters California endorsed the measure. Dozens of endorsements are expected to be announced in the weeks ahead.

Measures such as the Massachusetts Fair Share Amendment and Washington State’s capital gains tax have generated billions in new revenue for public services, and the number of high-income residents AND their cumulative wealth in both states have increased since the policies went into effect. 

In addition, tax experts have underscored that what makes the billionaire tax unique is how it’s designed to be fair and enforceable — so billionaires can’t avoid responsibility by moving their assets or claiming residency elsewhere. 

Impact of federal healthcare cuts

• Dozens of hospitals and ERs will close; dozens more will be forced to cut back services and lay off healthcare workers. The patient care crisis will worsen as patients are forced to wait longer and drive further for medical care. 
• Up to 3.4 million Californians could lose their healthcare coverage under Medicaid, including many seniors, children, veterans, and people with disabilities 
• The state could lose about $30 billion in federal healthcare funding every year — destabilizing the health care system and driving up health care costs for everyone.
• Insurance premiums for Californians who purchase Affordable Care Act plans could rise as much as 97%, and an estimated 400,000 Californians could be priced out of healthcare altogether. 

Impact of food assistance cuts

• Currently, 5.5 million Californians benefit from food aid. 3.5 million are senior citizens and children.
• At least 754,000 people could lose their entire monthly benefit, with over 3 million households facing reductions.
• The estimated funding loss is $2.5 to $4.5 billion annually.
• The SNAP/Cal-Fresh cuts, if not backfilled by other funding mechanisms, are expected to cost California approximately 400,000 jobs over the next nine years.

About the California Billionaire Tax Act

The California Billionaire Tax Act proposes a modest tax on the wealth of the state’s ultra-high-net-worth individuals to safeguard Medi-Cal, protect hospitals and health care workers, expand food assistance programs, and support public education. The updated initiative reflects a comprehensive response to federal policies that simultaneously threaten health care, food security, school performance, and economic stability throughout California.

Paid for by Save California Health Care and Public Education, Sponsored by Service Employees International Union – United Healthcare Workers West.  Committee’s Top Funder  Service Employees International Union – United Healthcare Workers West

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