SACRAMENTO, Calif. (AP) — A labor union behind a controversial tax on California billionaires significantly scaled back its proposal a day after it qualified for the November ballot, but the offer Thursday wasn’t enough to get the governor on board.
The proposal from the Service Employees International Union Healthcare Workers West to impose a one-time, 5% tax on individuals whose net worth exceeds $1 billion faces staunch pushback from a wide swath of critics, including Democratic Gov. Gavin Newsom. The union said Thursday that it would abandon the 5% tax proposal if Newsom would join them in supporting a 2% levy. The updated proposal would instead have to be passed by the Legislature, given a June 25 deadline for the measure to qualify for the ballot.
Tara Gallegos, a spokesperson for Newsom, said scaling it back doesn't change its "fundamental flaws that harm working Californians.”
“The Governor supports making the wealthiest Americans pay their fair share, but this poorly designed state-only measure will defund teachers, schools, clinics, and public safety,” she said in a statement.
The tax, to be paid by those living in the state as of Jan. 1, 2026, is meant to generate $100 billion in revenue, mainly to counter federal cuts to healthcare for low-income people with some money going to food assistance and education programs.
“A 2% one-time tax on that accumulated wealth is modest by any objective measure especially if it means keeping emergency rooms open and saving patient lives,” backers wrote in a letter to Newsom.
Secretary of State Shirley Weber, a Democrat, said Wednesday night that petitioners collected more than the roughly 875,000 signatures needed to place the original proposal before voters.
States have been debating how to respond to the major tax breaks and spending cuts legislation President Donald Trump signed last year. The proposal has already divided Democrats and major labor unions and triggered an expensive campaign to defeat it. The proposed tax is backed by prominent progressives including Vermont Sen. Bernie Sanders.
Silicon Valley tech moguls have spent millions to defeat it, and prominent players in Sacramento have opposed it. They include the California Medical Association and California School Boards Association, which helped launch a committee this week urging voters to reject it if it ends up on the ballot in November. Newsom also opposed a ballot measure in 2022 to increase taxes on the wealthy, which would have funded programs that help people buy electric cars or install more chargers. Voters rejected it.
Critics say the original measure would decrease state revenue over time by pushing the ultrawealthy to leave, taking the money they would contribute in income taxes with them. That would deal a huge blow to a state that relies on its top 1% of earners for nearly half its personal income tax revenue.
“This flawed measure is the wrong approach for California’s small businesses and working families,” said Roger Salazar, a spokesperson for Golden State Promise, a political committee fighting the tax.
The nonpartisan Legislative Analyst’s Office estimates that the 5% tax would generate tens of billions of dollars in the first few years, but that income tax revenues could subsequently decline by hundreds of millions of dollars annually.
Since the proposal was announced in October, Google co-founder Sergey Brin has donated $82 million to a political committee called Building a Better California that backs a variety of initiatives designed to blunt the billionaire tax proposal. It has raised more than $118 million, counting Brin’s contributions, from fewer than a dozen donors.
State lawmakers passed budget bills this week that aim to raise revenue in other ways, including by extending a tax on healthcare providers. Newsom and legislative leaders agree to this approach, Senate President pro Tempore Monique Limón said.
“The budget, as approved by the Legislature and now being negotiated with the Governor, does not include the billionaire’s tax,” the Democrat said in a statement. “Instead, it reflects additional revenues to address our long-term structural deficit.”
FILE - A large banner is seen at a campaign event for a proposed "billionaires tax" in Los Angeles on Feb. 18, 2026. (AP Photo/Jae C. Hong, File)
MILWAUKEE--(BUSINESS WIRE)--Sep 2, 2026--
Zurn Elkay Water Solutions Corporation (NYSE: ZWS) announced today it was named one of America’s Greatest Companies 2026.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260902390353/en/
The annual ranking, developed by Newsweek in partnership with Plant-A Insights Group, recognizes 650 U.S. companies demonstrating strong performance in financial leadership, innovation, workforce excellence and sustainability. Zurn Elkay earned the recognition in its first appearance on the America’s Greatest Companies list and was one of only nine Wisconsin-headquartered companies included in the 2026 ranking.
“We are honored to be recognized by Newsweek as one of America's Greatest Companies,” said Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions. “This recognition reflects the strength of our culture, the innovation that drives our growth and our commitment to creating sustainable value for associates, customers, shareholders and the communities we serve. We remain focused on executing our strategy, delivering meaningful impact and building an even stronger company for the future.”
America’s Greatest Companies 2026 was developed by Newsweek in partnership with Plant-A Insights Group to provide a comprehensive assessment of corporate performance. Zurn Elkay has been included in several Newsweek lists, such as America’s Most Responsible Companies (2022-26), America’s Greenest Companies (2025-26) and World’s Greenest Companies (2026). To learn more about Zurn Elkay Water Solutions and its sustainability efforts, including the company’s most recent sustainability report, visit zurnelkay.com/sustainability.
About Zurn Elkay Water Solutions
Named one of America’s Greatest Companies and America’s Most Responsible Companies by Newsweek and one of America’s Best Companies and the World’s Best Companies for Sustainable Growth by TIME, Zurn Elkay Water Solutions is headquartered in Milwaukee, Wisconsin, and is a growth-oriented, pure-play water management business that designs, procures, manufactures and markets what we believe to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. The Zurn Elkay product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products, water heating and filtered drinking water products for public and private spaces. Learn more at zurnelkay.com.
Cautionary Statement on Forward-Looking Statements
Information in this release may involve outlook, expectations, beliefs, plans, intentions, strategies or other statements regarding the future, which are forward-looking statements. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to Zurn Elkay Water Solutions as of the date of this release, and Zurn Elkay Water Solutions assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance, and actual results could differ materially from current expectations. Numerous factors could cause or contribute to such differences. Please refer to “Risk Factors” and “Cautionary Notice Regarding Forward-Looking Statements” in our report on Form 10-K for the period ended December 31, 2025, as well as the Company’s subsequent annual, quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from time to time with the Securities and Exchange Commission for a further discussion of the factors and risks associated with the business.
America’s Greatest Companies 2026 was developed by Newsweek in partnership with Plant-A Insights Group to provide a comprehensive assessment of corporate performance. Zurn Elkay has been included in several Newsweek lists, such as America’s Most Responsible Companies (2022-26), America’s Greenest Companies (2025-26) and World’s Greenest Companies (2026). To learn more about Zurn Elkay Water Solutions and its sustainability efforts, including the company’s most recent sustainability report, visit zurnelkay.com/sustainability.
“We are honored to be recognized by Newsweek as one of America's Greatest Companies,” said Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions, on the company's inclusion in Newsweek's list of America's Greatest Companies 2026. "This recognition reflects the strength of our culture, the innovation that drives our growth and our commitment to creating sustainable value for associates, customers, shareholders and the communities we serve. We remain focused on executing our strategy, delivering meaningful impact and building an even stronger company for the future.”
Zurn Elkay Water Solutions Corporation announced it was named one of America’s Greatest Companies 2026. The annual ranking, developed by Newsweek in partnership with Plant-A Insights Group, recognizes 650 U.S. companies demonstrating strong performance in financial leadership, innovation, workforce excellence and sustainability. Zurn Elkay earned the recognition in its first appearance on the America’s Greatest Companies list and was one of only nine Wisconsin-headquartered companies included in the 2026 ranking.
