California’s proposed one-time tax on billionaires appeared headed for defeat early Wednesday, as opponents led by nearly 13 percentage points, or about one million votes, with roughly half the ballots counted. The measure would have imposed a five percent levy on the state’s approximately 200 residents with net worths above $1 billion, directing money toward healthcare funding amid federal cuts.
The result could have consequences for entertainment workers who have struggled to maintain union health insurance as production activity and scripted television orders have declined. SAG-AFTRA members on the plan must reach $28,000 in earnings to qualify, and some actors are finding it increasingly difficult to meet the threshold.
Cheyenne Jackson, an actor known for roles in “American Horror Story,” “30 Rock” and “Glee,” recently launched One Job Away to spotlight performers who need a few more jobs to meet the annual earnings minimum. He said the project had received hundreds of inquiries from union members concerned about losing coverage.
The tax’s proposed funding could also have supported Medi-Cal and other coverage programs for low-income Californians, potentially helping entertainment workers who lose employer- or union-sponsored insurance. Freelancers and seasonal workers, including grips, set decorators, costume designers, editors and production assistants, were among those who could have benefited.
About 22 percent of workers in arts, entertainment, recreation and accommodation were enrolled in Medi-Cal in 2023, according to a UC Berkeley Labor Center survey. The Motion Picture Television Fund said it helped more than 1,100 low-income or uninsured industry workers obtain coverage in 2024, including through Medi-Cal and Covered California.
Hollywood largely stayed out of the campaign, despite the potential impact on its workforce. Ashley Craig, a volunteer with Patriotic Millionaires, which supports the tax, said the industry’s silence stood out. Jackson said the issue raised questions about why more people had not spoken up.
The campaign was among the most expensive ballot-measure fights in California history, with more than $350 million spent. Opponents and allied campaigns accounted for over 96 percent of that total. Among those who opposed the proposal were Governor Gavin Newsom, who argued it could prompt wealthy residents and businesses to leave the state, and Meta founder Mark Zuckerberg, who threatened to move if it passed.
The measure also drew attention to the political influence of wealthy opponents. Newsom endorsed Proposition 42, a billionaire-backed measure that was headed for victory and would effectively prohibit many future wealth taxes. The proposed tax’s defeat would leave the healthcare funding questions facing entertainment workers unresolved by this initiative.
Sources: The Hollywood Reporter.