Cryptocurrency bookmakers slightly raised odds that California’s one-time billionaire wealth tax will pass in this year’s general election.
Prediction Markets Wager on Passage Odds
Polygon (CRYPTO: POL)-based Polymarket currently prices this outcome at 32%, up 1 percentage point over the past week and 4 points over the past month.
The proposal has officially qualified to appear on California’s ballot for the Nov. 3 general election.
Over $3 million has been wagered on the outcome. The market resolves to “Yes” if a proposal containing a one-time 5% tax on accumulated worldwide net worth exceeding $1 billion for California residents—targeting individuals, households, or family units with wealth—passes in the election.
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Sanders Targets Google Co-Founder
Sen. Bernie Sanders (I-VT) took a dig at Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google co-founder Sergey Brin for his efforts to oppose the proposed billionaire tax, highlighting the wealth he amassed since President Donald Trump’s election.
“If California passes its one-time 5% wealth tax, he would owe $14 billion and still be worth $270 billion,” Sanders said. “So what is he doing? Spending $100 million to defeat the proposal.
The Big Divide
The campaign is led by the Service Employees International Union, which represents about 2 million workers in more than 100 job types across the U.S., Canada and Puerto Rico.
The union says the tax is needed to make up for large cuts to federal Medicaid and food assistance programs that were recently signed into law by President Donald Trump.
Dave Regan, the president of the union, said the effort has grown into a “national campaign,” as part of a wider push to reach money "hoarded outside of the tax system,” according to Politico.
The proposal has divided Silicon Valley. Venture capitalist Chamath Palihapitiya said he will stay in California and pay the tax, and Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang has also urged wealthy residents not to leave.
California Governor Gavin Newsom strongly opposed the tax, arguing that it could prompt wealthy residents and capital to leave California.
The California Democratic Party, meanwhile, has endorsed the November ballot measure to tax billionaires’ wealth.
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