Hollywood’s billionaire fight could leave workers paying the price for lost coverage

Tax measure nears defeat

California’s proposed billionaire tax was on track to fail early Wednesday. With about half the votes counted, opponents led by nearly 13 points, or one million votes, making passage very unlikely.

The ballot measure would have imposed a one-time tax of five percent on roughly 200 billionaires with net worths above $1 billion. It was intended to support the state’s healthcare fund and offset federal cuts, including to Medi-Cal and other programs for low-income Californians.

More than $350 million went into the campaign, making it one of the costliest ballot-measure fights in state history. Opponents and allied campaigns accounted for more than 96 percent of that spending.

Workers struggle for coverage

Entertainment workers could have benefited from expanded or preserved healthcare programs, including freelancers and people in seasonal jobs such as grips, set decorators, costume designers, editors and production assistants. The measure also could have provided a backstop for workers losing employer- or union-sponsored insurance.

Actors on the SAG-AFTRA plan are finding it harder to meet quarterly eligibility deadlines, which require $28,000 in earnings. The article links the difficulty to fewer scripted television orders and productions moving to other countries amid cost-cutting.

A UC Berkeley Labor Center survey found that about 22 percent of workers in arts, entertainment, recreation and accommodation were enrolled in Medi-Cal in 2023. In 2024, the Motion Picture Television Fund helped more than 1,100 low-income or uninsured workers obtain coverage, including through Medi-Cal and Covered California.

Hollywood largely stayed quiet

Despite the potential effect on workers, Hollywood largely stayed out of the tax debate. Ashley Craig, a Patriotic Millionaires volunteer, said, “Everybody was silent on this.” Gov. Gavin Newsom opposed the measure, arguing it would drive wealthy residents and their businesses out of California. Meta founder Mark Zuckerberg threatened to leave if it passed; Steven Spielberg had moved to New York earlier in the year, prompting speculation about his reasons.