Particle.news
Download on the App Store

California ‘Billionaire Tax Act’ Spurs Asset Moves and Political Pushback

The union proposal ties a one-time 5% levy to Jan. 1, 2026 residency, prompting reported relocations.

Overview

  • SEIU-UHW’s initiative would impose a single 5% tax on net worth above $1 billion, not income, and is still collecting nearly a million signatures to qualify for the November 2026 ballot.
  • The draft targets those who were California residents on Jan. 1, 2026, a retroactive design cited as accelerating relocations and restructurings among wealthy individuals.
  • New York Times reporting, cited by the Las Vegas Review-Journal, says Google co-founders Larry Page and Sergey Brin shifted numerous entities from California to Nevada before year-end.
  • Venture capitalist Chamath Palihapitiya claims on X that hundreds of billions of billionaire wealth have already left the state, a public assertion that has not been independently verified.
  • Political opposition is growing, with Gov. Gavin Newsom opposing the measure and commentators highlighting revenue uncertainty and the OECD’s record of countries retreating from wealth taxes.