A proposed tax on billionaires in California is igniting controversy. It's got everyone from tech industrialist to everyday people talking about money, fairness, and where the wealthy might head next. The idea is straightforward: a one-time 5% tax on anyone in California worth over $1 billion.
The tax would target billionaires' net worth as valued at the close of 2025, with the residency requirement set for January 1, 2026. Payments could stretch over five years, starting in 2027, with some extra fees for delaying. Supporters, including a prominent healthcare workers' union, argue the measure could generate about $100 billion to address shortfalls in education, food assistance, and healthcare funding areas strained by recent federal budget reductions.
But not everyone's on board. Some big names like Google co-founders Larry Page and Sergey Brin have already shuffled businesses out of state, eyeing places like Florida or Texas with no such taxes. Peter Thiel's in the mix too, and experts forecast more could follow if this passes in the November 2026 vote.
Critics warn the tax will drive away innovators and jobs, leaving California a barren landscape for the ultra-wealthy. On the other side, supporters point out it's only about 200 or so billionaires affected, and the cash could really help struggling families.
It makes one wonder if taxing the top tier is the fix we need or just a quick grab that backfires. Either way, California's watching closely as this plays out could reshape the state for years.
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