A proposed one-time tax on billionaires in California could send some of the wealthiest in the state elsewhere.
Proponents of the 5% tax say it is one of the few ways the state can provide healthcare for its most vulnerable. Opponents argue that it would squash the innovation that has made California rich.
Earlier this month, my colleagues reported that the Golden State’s richest residents say their success has created unimaginable wealth but also jobs and better lives for Californians, and they are tired of feeling targeted.
“I promise you this will be the final straw,” Jessie Powell, co-founder of the Bay Area-based crypto exchange platform Kraken, wrote on X. “Billionaires will take with them all of their spending, hobbies, philanthropy and jobs.”
Some of them have already decided to take their companies to other states with lower taxes and less regulation. PayPal co-founder Peter Thiel announced on Dec. 31 that his firm had opened a new office in Miami. The same day, venture capitalist David Sacks said he was opening an office in Austin, Texas. California billionaires who are residents of the state as of Jan. 1 would be affected if the ballot measure passes.
The tax proposal would cost the state’s wealthiest residents about $100 billion if a majority of voters support it on the November ballot. In the meantime, the initiative’s backers must gather the signatures of nearly 875,000 registered voters by June 24.
What the billionaires tax calls for
Initiated by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), the tax measure calls on California billionaires to save the state’s healthcare system from collapse and help fund California public K-14 education and state food assistance programs.
Massive federal funding cuts to healthcare as part of the One Big Beautiful Bill Act put the state in a vulnerable position. The California Budget & Policy Center…