"In California, a proposed law drafted by organized labor would impose a one-time tax on all the state's billionaires, equal to some portion of their total worth. Those whose net worth exceeds $1.1 billion would pay around five percent; five percent of $1.1 billion is $55 million, which would leave those Californians with a mere $1.045 billion in personal net worth."
"Among the proposal's opponents-including, of course, many billionaires, who reportedly have already begun planning their exits from the state in anticipation of a tax that may very well never come to pass-is California governor Gavin Newsom, who has boasted of working against its passage behind the scenes, and has promised to defeat the initiative should it ever reach his desk, where he could bring its passage into law to an end simply by refusing to sign it."
California would levy a one-time wealth tax under the proposed 2026 Billionaire Tax Act targeting individuals with net worths above defined thresholds. Individuals exceeding $1.1 billion would pay about five percent, while those between $1.0 billion and $1.1 billion would pay a lower percentage. Payments could be spread over five years starting in 2027 to address liquidity issues. The levy could generate substantial revenue while leaving affected billionaires largely wealthy. Many billionaires oppose the tax and some reportedly plan to leave the state. Governor Gavin Newsom has actively opposed similar measures, having defeated such taxes twice despite their popularity, and is widely viewed as eyeing a 2028 presidential bid.
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