Overview
- SEIU–United Healthcare Workers West is advancing a ballot measure to impose a one-time 5% tax on Californians with net worth above $1 billion, which has not yet qualified and requires roughly 875,000 to 900,000 valid signatures.
- If approved, the tax would apply to those residing in California on January 1, 2026, a retroactive clause that has led some billionaires to consider residency moves, with reports of Larry Page filing Florida entities and Peter Thiel scouting out-of-state offices.
- The Legislative Analyst’s Office says the levy could raise tens of billions of dollars, with proponents citing roughly $100 billion and allocating 90% to health-care services, while warning that some wealthy residents are likely to leave, reducing future income tax revenue.
- Critics including Palmer Luckey, Bill Ackman and Garry Tan argue the tax could force sales of illiquid stakes and create collection risks; taxpayers could opt to pay over five years with an additional annual charge reported at 7.5%.
- Gov. Gavin Newsom opposes the measure, Rep. Ro Khanna supports a limited wealth tax while suggesting workarounds for illiquid founders, and economists dispute whether such taxes trigger large-scale out-migration.