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California Billionaire Tax Drive Triggers Tech Backlash as Union Sets January Signature Push

The one-time 5% levy on residents worth over $1 billion is still a proposed ballot measure that supporters aim to qualify for November 2026.

Overview

  • SEIU–UHW says it will begin gathering signatures in January to reach roughly 874,641 needed to place the proposal on the 2026 ballot.
  • The measure would impose a one-time 5% tax on Californians with net worth above $1 billion, apply retroactively to residents as of Jan. 1, 2026, and be collected in 2027 with options to spread payments.
  • Title and summary direct about 90% of proceeds to health care and the remainder to food assistance or education, with most asset types counted and some real property and certain retirement accounts excluded.
  • Tech leaders escalate opposition, with reports that Larry Page set up Florida entities, Peter Thiel explored out-of-state operations, and founders warn the plan reaches unrealized and illiquid holdings.
  • Attorney Alex Spiro told Gov. Gavin Newsom his clients would permanently relocate and mount a constitutional challenge, as Newsom opposes the tax and state analysts warn departures could cut recurring revenue.