California Billionaires are once again at the center of a fierce policy and economic debate as a proposed Wealth Tax threatens to reshape where America’s richest individuals and most powerful companies choose to live and operate.
With a one-time levy aimed squarely at billionaires, the initiative is already prompting strategic moves out of the Golden State, raising broader questions about California’s fiscal future, corporate flight, and the sustainability of its tax base.
California Billionaires and the Wealth Tax Proposal Explained
The proposed Wealth Tax, backed by the Service Employees International Union–United Healthcare Workers West, would impose a one-time 5% tax on net worth exceeding $1 billion for anyone considered a California resident as of January 1, 2026. The measure has not yet qualified for the November 2026 ballot.
Payment would be due starting in 2027, with payments spread over five years, plus added administrative costs. This is all estimated by the Legislative Analyst’s Office (LAO).
