"A proposed billionaires' tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while Democratic Gov. Gavin Newsom maneuvers to defeat a levy that he fears will lead to an exodus of wealth. A technology mecca, California has more billionaires than any other state - a few hundred, by some estimates. Nearly half its personal income tax revenue, a financial backbone in the nearly $350 billion budget, comes from the top 1% of earners."
"In a state with a vast gap between rich and poor, the plan has resulted in a tangle of competing interests at a time when both Democrats and Republicans are struggling to respond to economic anxiety driven by rising costs ahead of this year's midterm elections. An online war of words has tech leaders pondering a hollowing out of Silicon Valley, and millions of dollars are flowing to political committees engaged in the fight. That includes $3 million from billionaire Peter Thiel, a founder of PayPal, to a committee tied to a business group opposing the tax."
California has more billionaires than any other state, and the top 1% generate nearly half of personal income tax revenue in the nearly $350 billion budget. A large health care union is seeking a November ballot measure to impose a one-time 5% tax on billionaire assets — including stocks, art, businesses, collectibles and intellectual property — to backfill federal cuts to health services for lower-income people signed by President Donald Trump. Gov. Gavin Newsom opposes the levy, fearing an exodus of wealth, while tech leaders have threatened to leave and major donors, including Peter Thiel, have funded opposition. The measure requires more than 870,000 petition signatures and would apply retroactively to residents as of Jan. 1.
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