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Tech Backlash Grows as California Weighs One-Time Billionaire Wealth Tax

High-profile relocations underscore uncertainty around a union-backed proposal that still must gather signatures to reach the 2026 ballot.

Overview

  • An SEIU–UHW ballot initiative would levy a one-time 5% tax on Californians with net worth above $1 billion, applied to assets including businesses, securities, art and intellectual property as of January 1, 2026.
  • Backers say about 90% of the revenue would fund health care, and taxpayers could pay over five years with a 7.5% annual nondeductible charge on any unpaid balance.
  • The state’s Legislative Analyst’s Office estimates tens of billions in one-time revenue but warns of large uncertainty due to valuation issues and potential shifts in billionaire behavior.
  • Opposition intensified as David Sacks relocated to Austin and opened a Craft Ventures office, Peter Thiel established a Miami office for Thiel Capital, and reports indicated Larry Page moved several entities to Florida.
  • The measure is still collecting roughly 875,000 signatures to qualify, drawing criticism from investors and editorial boards and opposition from Gov. Gavin Newsom, even as some officials voice guarded support.