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yesterday

California Billionaire Wealth Tax Drive Gains Voter Backing as Signature Push Intensifies

Backers still must gather roughly 875,000 valid signatures by mid-April to place the one-time 5% levy tied to Jan. 1 residency on the ballot.

Homes can be seen in a neighborhood in Atherton in 2023. Some have suggested that a proposed tax on California’s billionaires could lead entrepreneurs to pull back from the Bay Area, restricting job growth — and future demand for housing.
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Overview

  • A Nestpoint poll found about 60% of likely voters support the proposed tax, with support measuring 54% after respondents heard counterarguments.
  • The initiative would assess a single 5% charge on Californians with net worth above about $1 billion based on Jan. 1, 2026 valuations and residency, with a phase-out down to $1 billion reported by proponents.
  • Proponents led by SEIU-UHW say roughly 200-plus billionaires could owe about $100 billion collectively, with proceeds intended for health care and to offset budget cuts.
  • Governor Gavin Newsom opposes the measure, warning a one-time windfall could be followed by departures of high earners; the Legislative Analyst’s Office similarly flags long-term revenue risks, noting the top 1% provides over 40% of state tax receipts.
  • Some ultra-wealthy residents are already reducing their California ties, legal challenges are expected if the measure passes, and housing analysts say broad market effects are likely limited unless there is a mass corporate and worker exodus.