California voters will consider a measure in November to raise taxes on billionaires

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Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. forge ahead / fɔrdʒ əˈhɛd / (phrasal v.) – to move forward and make a lot of progress with a plan
    Example:

    The company decided to forge ahead with the event despite the bad weather.


  2. out of touch / aʊt ʌv tʌtʃ / (idiom) – not knowing what is happening, or not understanding how a specific group of people truly feels and thinks about a situation
    Example:

    He is rich and has someone else buying his groceries and gas, so he is completely out of touch with how much everyday items actually cost.


  3. threaten / ˈθrɛt n / (v.) – to be likely to cause hurt, damage, or serious trouble to someone or something
    Example:

    A new global pandemic threatens to close down small businesses.


  4. volatile / ˈvɒl ə tl / (adj.) – likely to change suddenly, unexpectedly, and in an extreme way, especially by getting worse
    Example:

    Food and gas prices are so volatile, so it is difficult for him to plan his monthly budget.


  5. subsequently / ˈsʌb sɪ kwənt li / (adv.) – later in time after something else has happened
    Example:

    He hurt his leg during the game and was subsequently taken to the hospital.


Article

Read the text below.

California voters will consider a controversial proposal in November to temporarily raise taxes on billionaires after the labor union backing the measure announced it would forge ahead despite pressure from critics to withdraw it.


The proposal, backed by the Service Employees International Union Healthcare Workers West, would impose a one-time 5% tax on individuals whose net worth exceeds $1 billion and who were living in the state as of January 1, 2026. The goal is to generate $100 billion in revenue, mainly to fund the state’s Medicaid system after federal cuts.


“I am all in on this,” union President Dave Regan said on a Zoom call, adding that opponents of the proposal are “totally out of touch.”


Democratic Gov. Gavin Newsom and many traditional allies of the union oppose the measure. They argue it is a temporary fix for an ongoing problem and that it would push the ultrawealthy to leave the state, taking the money they would contribute in income taxes with them. Newsom, who is considering a presidential run as he prepares to leave office in January, has generally opposed tax increases during his time as governor.


A coalition of healthcare, education, and housing groups—including the California Medical Association and California School Boards Association—banded together to fight the tax.


“The dangerous wealth tax directly threatens vital funding for education and schools, healthcare and clinics, public safety, and infrastructure projects by making California’s revenue even more volatile,” the coalition said in a statement.


“Driving away the state’s sustainable tax base for a one-time grab is bad policy and an even worse deal for 40 million Californians who will be left holding the bag,” he said in a statement.


Under the proposal, the state would spend the money generated from the tax over multiple years. The nonpartisan Legislative Analyst’s Office estimates that the proposal would generate tens of billions of dollars in the first few years, but that income tax revenues would subsequently decline by hundreds of millions of dollars annually.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The article states that a new proposal would impose a one-time 5% tax on billionaires to fund the state’s Medicaid system. In your opinion, is it fair to focus only on the richest individuals to solve public funding issues, or should the financial burden be shared equally by everyone? Why or why not? Discuss.
  • Opponents argue that this tax would push the ultrawealthy to leave the state and take their money with them. If you were a wealthy business owner, would a tax increase motivate you to move to a different place, or would you stay to support your community? What alternative solutions can a government use to raise money instead of increasing taxes? Discuss.

Discussion B

  • Union President Dave Regan remarked that opponents of the proposal are “totally out of touch.” Do you agree or disagree with his statement? Do you believe that wealthy individuals and politicians can truly understand the daily financial struggles of ordinary citizens? Why or why not? Discuss.
  • What do you think happens to a society when its politicians, leaders, and wealthy individuals are completely “out of touch” with what ordinary citizens are experiencing? How does this huge gap ruin trust between people and their leaders? What is the best way to bring these different worlds closer together? Discuss.