Staff Reports
The state’s big debate over the proposed California billionaire tax just got a welcome reality check. Chris Hannan, president of the State Building and Construction Trades Council of California, broke ranks with the SEIU‑backed campaign and warned that a retroactive, one‑time wealth levy could chase investment and jobs out of the state. That crack in labor unity matters — and it should make voters squint at the glossy ads and feel-good slogans.
Labor split: construction trades vs. SEIU on the billionaire tax
Hannan didn’t mince words. He said the measure could push wealthy investors and big projects out of California, costing union jobs that depend on stadiums, factories and major development work. That’s a big deal because unions usually march together on big tax fights. When the men who build the projects start sounding like the business lobby, it tells you the policy might not be as harmless as its backers claim.
Why the one‑time wealth tax could hit workers and projects
The ballot plan would levy a one‑time 5% tax on net worth above $1 billion. Supporters point to roughly $100 billion in possible revenue over five years to fund health care and other programs. But a retroactive wealth grab is tricky. It could make rich people move assets or limits new investment here. That means fewer big projects, fewer construction contracts, and fewer hours on the job for real people — the same people SEIU says it wants to help.
Political fallout and what to expect before the November ballot
SEIU‑UHW says it has already turned in nearly 1.6 million signatures — well above what’s needed — putting the measure on track for the November ballot. Governor Gavin Newsom has come out against the plan, and now the building trades’ public opposition adds fuel to the opponents’ case. Expect fierce ad wars, legal fights over valuation and residency rules, and last‑minute polling swings as both sides try to scare or comfort voters.
Cut through the spin: common sense should win
Voters should like Hannan’s plain talk. If a plan to raise money for health care will also hollow out the state’s investment base, it’s not a free lunch. The SEIU campaign can dress the measure up as an emergency fix, but Californians need to ask whether a one‑time tax that scares away projects is worth the promise. If you care about jobs, honest labor voices warning about real losses deserve more weight than celebrity endorsements and soundbites. California voters should take that crack in labor unity seriously — it’s not just politics, it’s a canary in the mine.
