Recently, the 2026 “Wealth Tax” proposal put forward by California unions has reportedly gathered 1.5 million signatures. Once verified as valid by the California Secretary of State’s office, it will be included on the ballot in November.
The proposal, known as the “California Billionaire Tax Act,” was initiated by the SEIU–United Healthcare Workers West, a branch of the International Service Employees Union. As of Monday, the branch announced that they have collected over 1.5 million signatures, surpassing the required threshold of about 875,000 signatures for ballot qualification.
The “Wealth Tax” proposal suggests that starting from January 1, 2026, California residents with a net worth exceeding $10 billion would be subject to a one-time tax equivalent to 5% of their wealth, payable over five years. This proposal has stirred strong opposition from California Governor Gavin Newsom, gubernatorial candidates, and tech giants, even leading to multiple billionaires relocating out of California.
As of now, the California Secretary of State’s office has not officially certified these signatures.
The union, SEIU-UHW, which proposed the “Wealth Tax,” believes that extracting funds from billionaires’ net worth can help stabilize the healthcare system. If the voters ultimately approve this proposal, individuals residing in California as of January 1, 2026, with a net worth exceeding $10 billion, would be subject to a one-time 5% tax.
Currently, there are around 200 residents in California with a net worth exceeding $10 billion, with a total wealth value of $2 trillion. In theory, this could generate approximately $100 billion in tax revenue. However, the exact number of individuals who will be affected by this tax remains a controversial issue.
Critics argue that the proposal is driving billionaires and large corporations to accelerate their exodus from the blue state of California to low-tax, lightly regulated, and more business-friendly red states.
The Hoover Institution noted that California’s proposal to levy a one-time 5% wealth tax on billionaires has led to several billionaires leaving the state, resulting in at least a $25 billion loss. The departure of billionaires also means that California will permanently lose the future state income tax they would have paid.
Uber co-founder and former CEO Travis Kalanick officially moved to Texas on December 18 last year, emphasizing that he left California before the new tax took effect. Had he not left, he could have potentially faced a $180 million wealth tax if the “Wealth Tax” proposal is enacted.
Former PayPal COO David O. Sacks criticized California’s “Wealth Tax” proposal on social media, labeling it as a “comprehensive confiscation of 5% of personal assets.”
Founders or co-founders of companies like Facebook, Meta, Google, Palantir Technologies, and Oracle have chosen to relocate to Florida.
Matt Mahan, the Democratic Mayor of San Jose and current candidate for California Governor, has voiced concerns on social media, indicating that imposing a wealth tax will eventually make most residents of the state pay the price.
In a post, he wrote, “Driving billionaires out of California may feel good in the short term, but the end game is almost always the same: the working class ends up footing the bill for these political tricks, with California families in the long run being burdened with more government service and infrastructure costs.”
Next, the Secretary of State’s office will commence the signature verification process to officially confirm whether the “Wealth Tax” proposal qualifies for inclusion on the November ballot. The union is highly confident about this.