In November, Californians are set to vote on a one-off 5% levy targeting residents with wealth exceeding $1 billion. This union-backed proposal aims to raise $100 billion, a sum potentially sufficient to replace federal healthcare funding previously removed by Donald Trump's One Big Beautiful Bill Act. Around 200 individuals would be subject to this tax.
The referendum is seen as a test of whether extreme wealth can influence political power to defeat a popular redistributive policy. Google co-founder Sergey Brin has already spent $100 million opposing the tax, which is a fraction of the $13 billion bill he could face if it passes. Other billionaires are reportedly joining his opposition.
Separately, prominent progressive academics, led by Nobel prize winner Joseph Stiglitz, are urging Britain to join a new global initiative to tackle inequality. Professor Stiglitz advocates for the creation of a new UN International Panel on Inequality (IPI). This call follows the G20's first-ever inequality report, which warned that the growing gap between rich and poor is a human-made crisis that erodes democracy and social cohesion, and hinders efforts against the climate emergency.
The academics suggest that Prime Minister Andy Burnham should back the IPI and make tackling global inequality a priority during Britain's 2027 G20 presidency. Professor Stiglitz argues that extreme inequality is a policy choice, exacerbated by financial deregulation, weaker labour protections, and privatisation. Countries with high inequality are seven times more likely to experience democratic backsliding or authoritarian drift.