California Secretary of State, Shirley N. Weber, announced on June 17th that the proposal for a “billionaire tax” in California has gathered enough signatures to qualify for the ballot on November 3rd.
The proposal aims to levy a one-time tax of up to 5% on individuals residing in California as of January 1, 2026, with a net worth exceeding 10 billion dollars; however, certain assets such as retirement pensions and accounts may be exempt. Weber stated that through random sampling estimates, the proposal has garnered about 962,000 valid signatures, surpassing the threshold of 875,000 signatures required for the initiative. She mentioned that on the 25th, the eligibility of the proposal for a general vote will be formally confirmed.
California boasts the highest number of billionaires in the United States, with nearly half of the state government’s personal income tax revenue coming from the top 1% of taxpayers. State Attorney General Rob Bonta stated that this tax measure is expected to generate billions of dollars in revenue over the course of several years, with 90% earmarked for healthcare and 10% for food assistance or education-related projects.
Individuals subject to this one-time tax can choose to pay it over a span of 5 years.
Mayra Castañeda, a member of SEIU-UHW, which supports the proposal, expressed, “When funding is cut, it brings immense suffering. We clearly see that the majority of California residents and even the majority of billionaires believe this proposal is fair and necessary, whether it’s to maintain the operation of the emergency room or to prevent California businesses from closing.”
Governor of California, Gavin Newsom, publicly opposes the proposal, fearing that it will drive high-income individuals to leave the state. He had already stated in January of this year that he would vehemently oppose the proposal.
Newsom told Bloomberg BusinessWeek that a wealth tax could ultimately shrink California’s tax base (e.g., wealthy individuals leaving the state), reducing the tax revenue originally used for social services and education. He also mentioned that he has met with many billionaires who are concerned about the proposal. Newsom stated, “As the one responsible for budgeting for the state, I am always very aware that many of our historically significant policy measures rely on the contributions of a very small number of taxpayers.”
On the 17th, SEIU-UHW stated that if Newsom is willing to support another one-time 2% wealth tax proposal, they would be willing to drop the 5% billionaire tax proposal. However, the 2% proposal would need to be passed by the state legislature and faces the legislative deadline on June 25th.
In a letter to Newsom, supporters wrote, “Levying a one-time 2% tax on these accumulated fortunes is by any objective standard a moderate measure, especially if it can keep emergency rooms open and save lives of patients.”
Newsom’s spokesperson, Tara Gallegos, stated that even with a lowered tax rate, it cannot eliminate the “fundamental flaws of the proposal that harm California workers”. The statement reads, “The governor supports ensuring that the wealthiest Americans pay their fair share of taxes, but this ill-designed measure, specific only to California, will diminish funding sources for teachers, schools, clinics, and public safety departments.”
Many California billionaires have openly opposed the proposal, including Google co-founder Sergey Brin. He donated $82 million to the political committee “Building a Better California,” which is against the billionaire tax proposal. The committee has raised over $118 million in funds.
According to a report released by the Hoover Institution in March 2026, nearly 30% of billionaires covered in the tax base from this proposal have already left California, including Google co-founders Larry Page and Brin, Meta CEO Mark Zuckerberg, PayPal co-founder Peter Thiel, Uber co-founder Travis Kalanick, auto loan mogul Don Hankey, renowned director Steven Spielberg, as well as over 45 California Limited Liability Companies (LLCs).
The report suggests that the tax measure could bring in approximately $40 billion in revenue over the next 5 years, instead of the anticipated $100 billion by supporters. 💼