California's Billionaire Tax Heads to November Ballot
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- California voters will decide in November on a one-time 5% tax on residents and trusts with net worth above $1 billion — the first such measure in the U.S.
- SEIU led the ballot drive and worked with University of Missouri law professor David Gamage to craft the proposal as a counter to healthcare cuts in Trump's "Big Beautiful Bill."
- Gov. Gavin Newsom vehemently opposes the measure and argues for a national wealth tax instead, writing that "wealth is movable, and it shops for the state with the lowest taxes."
- The state's Legislative Analyst's Office projected tens of billions in initial revenue but warned the state could lose "hundreds of millions of dollars or more per year" in income tax as billionaires relocate.
- Google co-founder Sergey Brin already relocated his primary residence to Nevada and has poured tens of millions into a nonprofit backing a rival ballot measure to neuter the tax.
- Nvidia CEO Jensen Huang said he is "perfectly fine" with the tax despite a possible nearly $8 billion bill; businessman Tom Steyer, who ran for governor, also backs taxing "billionaires like me."
- Norway, which has taxed wealth since 1892 and raised the rate five years ago, saw wealthy departures jump 518% in 2022-2023 according to the think tank Civita, prompting a 2024 crackdown on its 37.8% exit tax.
Why it matters: If approved, the tax would generate tens of billions upfront while risking a billionaire exodus — Brin already pre-emptively fled to Nevada, and the LAO projects hundreds of millions in annual income-tax losses from relocations. Other jurisdictions from NYC's Mamdani to Washington and Massachusetts are watching as a test of whether states can tax the ultra-wealthy without losing them.
