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Tech Leaders Warn of Exit Over California's Proposed 5% One-Time Billionaire Tax

The union-backed initiative remains in signature collection with Gov. Gavin Newsom opposed.

Overview

  • The plan would levy a one-time 5% charge on Californians with net worth above $1 billion, covering stocks, real estate, artwork and intellectual property.
  • Backers led by SEIU–United Healthcare Workers West pitch the revenue as a way to restore healthcare funding.
  • Peter Thiel, Larry Page, Palmer Luckey and Bill Ackman warn they could exit or scale back ties, arguing the tax would force asset sales and hurt innovation.
  • Filings show three LLCs tied to Larry Page were created in Florida this month, alongside reporting that he has considered leaving California.
  • The initiative is still gathering roughly 875,000 signatures to reach the 2026 ballot, with some reports describing possible retroactive, worldwide application.