The battle over a new tax on California’s billionaires is set to heat up in the coming months as citizens spar over whether the state should squeeze it’s ultra-rich to better serve its ordinary residents.
The proposed billionaire tax that triggered the tempest is still far from being approved by voters or even making the ballot, but the idea has already sparked backlash from vocal tech moguls – some of whom have already shifted their bases outside the state.
under the Billionaire Tax Act, Californians worth more than $1 billion woudl pay a one-time 5% tax on their total wealth. The Service Employees International union-United Healthcare Workers West, the union behind the act, said the measure would raise much-needed money for healthcare, education and food assistance programs.
Other unions have piled on billionaires, targeting the rich in Los Angeles.
A group of Los Angeles labor unions said Wednesday that it is proposing a ballot measure to raise taxes on companies whose chief executive officers earn 50 times more than their median-paid employees.
Here is how this fight could continue to play out in the Golden State:
Who would be affected?
The California billionaire tax would apply to about 200 California billionaires who reside in the state as of Jan. 1.Roughly 90% of funds would go to healthcare and the rest to public K-14 education and state food assistance.
The tax, due in 2027, would exclude real estate, pensions and retirement accounts, according to an analysis from the Legislative Analyst’s Office, a nonpartisan government agency. Billionaires could spread out the tax payment over five years, but would have to pay more.
Which billionaires are already distancing themselves from California?
Google co-founders Larry Page and Sergey Brin
Google is still headquartered in California, but December filings to the California Secretary of State show other companies tied to Page and Brin recently converted out of the state.
One filing, for example, shows that one of the companies thay managed, now named T-rex holdings, moved from Palo Alto to Reno last month.
Business Insider and the New York Times earlier reported on these filings. Google didn’t respond to a request for comment.
Palantir co-founder Peter Thiel
Thiel Capital, based in los Angeles, announced in December it opened an office in Miami. The firm didn’t respond to a request for comment. Thiel recently contributed $3 million to the political action committee of the California Business roundtable, which is opposing the ballot measure, records provided to the Secretary of State’s Office show.
Oracle co-founder and Chief Technology Officer Larry Ellison
Years before the wealth tax proposal, Ellison began pulling back from California, but he’s continued to distance himself farther from the state since the proposal emerged.
Last year, Ellison sold his San francisco mansion for $45 million. the home on 2850 Broadway was sold off-market in mid-December, according to Redfin.
Oracle declined to comment.
DoorDash co-founder and Chief Technology Officer Andy Fang
Adversarial Research & Freshness Check – California Wealth Tax Proposal (as of 2026/01/19 18:19:21)
Here’s a breakdown of the factual claims in the provided text, verified against authoritative sources, and a freshness check for recent developments.
1. Failed Wealth Tax Attempts:
* Claim: A 2020 proposal for an annual tax on California residents with net worth over $30 million failed.
* Verification: This is TRUE. Assembly Bill 2088 (AB 2088), proposing a net wealth tax, was withdrawn in January 2020 due to insufficient support. (Source: https://lao.ca.gov/publications/Report/4324 - California Legislative Analyst’s Office)
2. Support from Sanders & Khanna:
* Claim: Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Fremont) have backed the wealth tax proposal.
* Verification: This is TRUE. Both Sanders and khanna have publicly supported wealth tax proposals at the federal level. Khanna has specifically advocated for wealth taxes and has been involved in discussions regarding California’s proposals. (Source: https://rokhanna.house.gov/media-center/press-releases/rep-khanna-sanders-introduce-tax-millionaires-act – Rep. Khanna’s official website; numerous news reports on Sanders’ wealth tax proposals)
3. Proposition 30 (2012):
* Claim: Californians approved Proposition 30 in 2012, increasing sales and income tax for high earners.
* Verification: this is TRUE.Proposition 30 temporarily raised sales tax and income tax rates for individuals earning over $250,000. (Source: https://ballotpedia.org/California_Proposition_30_(2012)) – Ballotpedia)
4. Potential Revenue & Uncertainty (LAO Report):
* Claim: The Legislative Analyst’s Office (LAO) estimates the tax could generate tens of billions but acknowledges uncertainty due to potential behavioral changes and fluctuating stock prices.
* Verification: This is TRUE.The LAO’s December 2023 analysis of the proposed wealth tax (Initiative 25-024) confirms this. The report highlights significant uncertainty in revenue projections, citing potential avoidance strategies and the volatility of asset values. (Source: https://lao.ca.gov/BallotAnalysis/Initiative/2025-024 – California Legislative Analyst’s Office)
5. Revenue Estimates & Arguments:
* Claim: Supporters estimate $100 billion in revenue; opponents fear billionaires will leave.
* Verification: This is TRUE. proponents of the initiative, like the SEIU-UHW, have cited $100 billion as a potential revenue figure. Opponents, like Chamath Palihapitiya, have warned of significant revenue loss due to potential emigration. (Source: Multiple news reports covering the initiative, including https://www.latimes.com/california/story/2023-12-14/california-wealth-tax-initiative-billionaires - Los Angeles Times)
6. “Billionaire Exodus” Debate:
* Claim: The union backing the initiative claims the “billionaire exodus” is overstated,with few departures by Jan 1st. Palihapitiya argues losses from those who left will outweigh gains.
* Verification: This is TRUE, but evolving. Initial reports in early January 2024 indicated a limited number of high-net-worth individuals had demonstrably left California before the January 1st deadline. However,tracking actual wealth migration is complex and ongoing. Palihapitiya’s claim remains a prediction, and its accuracy is yet to be persistent. (Source: https://www.bloomberg.com/news/articles/2024-01-03/california-s-wealth-tax-doesn-t-spark-billionaire-flight-yet – Bloomberg; various news reports on Palihapitiya’s statements)
**breaking News Check (as of 2026/01/19 18:19
