Business leaders from Palmer Luckey to David Sacks react to California's proposed billionaire tax

"Some of the biggest names in business are speaking up about California's billionaire tax proposal. The measure proposed a one-time 5% tax for California residents whose assets exceed $1 billion. If the proposal receives enough signatures, it would appear on the state ballot in November. If the proposal passes, the tax would apply retroactively to all California residents as of January 1, 2026."

"Proposed by the Service Employees International Union-United Healthcare Workers West labor union, the bill attempts to fill a projected multibillion-dollar state budget deficit. California is home to some of the biggest companies - in both value and prestige - in the US. The state boasts Hollywood and Silicon Valley, although some of the industries' key players have relocated. In a letter to Gov. Gavin Newsom obtained by Business Insider, attorney Alex Spiro wrote that his clients would "permanently relocate" if the tax becomes law."

A measure would impose a one-time 5% tax on California residents whose assets exceed $1 billion, applied retroactively to January 1, 2026. The initiative requires sufficient signatures to appear on the November ballot. The proposal was put forward by the Service Employees International Union-United Healthcare Workers West to help fill a projected multibillion-dollar state budget deficit. California's concentration of major companies in Hollywood and Silicon Valley is noted, though some industry leaders have already relocated. Prominent business figures responded with varied reactions, including calls for a fairer tax system, warnings of permanent relocation, and consideration of moving programs or operations out of state.

Read at Business Insider