California Ballot Measure Would Impose $100 Billion Wealth Tax

The proposed legislation targets a pool of more than 200 residents, each holding at least $1 billion, for a one-time 5% tax. Proponents estimate this would generate $100 billion to replace federal funds lost due to President Donald Trump's recent tax and spending bill. Suzanne Jimenez of the Service Employees International Union-United Healthcare Workers West described the measure as a short-term fix. She warned that inaction would lead to a collapse of the state's healthcare system while longer-term funding solutions are developed.

California holds the largest economy of any US state and ranks fourth globally, surpassing the economies of India and the United Kingdom. Despite this financial scale, the state carries the largest share of homeless people in the nation and maintains one of the widest wealth gaps. Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that this is likely the first tax targeting such an extreme percentile of wealth. He attributed the push to an anti-elite sentiment aimed at rebalancing the economic scale.

Governor Gavin Newsom, whose term is ending, leads the opposition. He argues the tax could drive wealthy residents and their income tax revenue out of the state. Google co-founder Sergey Brin has contributed more than $100 million to a political organization funding ballot measures intended to block the tax, according to the Los Angeles Times. A September poll by that newspaper and the Berkeley Institute of Governmental Studies found 45% of likely voters in favor, 42% opposed, and 13% undecided. A majority is required for passage.

If approved, the tax applies retroactively to anyone worth at least $1 billion who lived in California as of January 1, 2026. Reports indicate at least six billionaires have already left the state. These include Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber executive Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he moved to Nevada because the proposal made him feel unwanted despite the jobs his companies created.

Mark Zuckerberg, CEO of Meta, told the company's board last month that he is considering moving his primary residence out of California. Meta agreed to a new stock deal giving him additional shares to cover potential losses; he could owe up to $12.5 billion. DoorDash co-founder Andy Fang labeled the measure stupid. Conversely, Nvidia chief Jensen Huang told CBS that he does not mind paying taxes and accepts that higher income should mean higher payments. Senator Bernie Sanders told a Los Angeles rally that billionaires believe they have a God-given right to rule and predicted voters would teach them a powerful lesson on November 3.

Washington state voters are simultaneously considering a 9.9% tax on annual income over $1 million. Dr. Kristian Niemietz of the Institute of Economic Affairs noted that while wealth taxes were once common in Europe, only Spain, Norway, and Switzerland still have them. He described such levies as more trouble than they are worth. The Public Policy Institute of California reports that 72% of Californians believe the gap between rich and poor is widening and that the state government should do more to address it.