Voters Decide on $100 Billion Wealth Tax

$100 billion is the estimated revenue that a new tax measure would generate if California voters approve it this November. The proposal targets the state’s wealthiest residents. It would impose a one-time 5% levy on the net worth of every billionaire living in California. More than 200 individuals fall into this category. The vote is set for November 3.

The tax is designed to address a specific funding gap. Federal cuts from President Donald Trump’s recent tax and spending bill have reduced support for the state’s healthcare system. Proponents argue the measure is a necessary short-term fix. Suzanne Jimenez of the Service Employees International Union says inaction could lead to a healthcare collapse. She describes the tax as a bridge until a longer-term funding solution is found.

California holds the largest economy in the United States. It is the fourth largest economy in the world. Its economic size exceeds that of India and the United Kingdom. Despite this wealth, the state has the largest share of homeless people in the nation. It also has one of the widest gaps between the rich and the poor. Francesco Trebbi of the University of California Berkeley believes this is the first billionaire tax of its kind. It targets the extreme top percentile of the wealth distribution.

Governor Gavin Newsom is the most prominent opponent of the measure. His term in office is ending. He warns that the tax could drive wealthy residents out of the state. Their departure would also reduce income tax revenue. Google cofounder Sergey Brin has backed a political effort to block the tax. He has given more than $100 million to an organization funding that campaign. A recent poll shows the race is tight. Forty-five percent of likely voters are in favor. Forty-two percent oppose it. Thirteen percent remain undecided.

The tax would apply retroactively if it passes. It would cover anyone worth at least $1 billion who lived in California on January 1, 2026. At least six billionaires have already left the state. This group includes Google cofounders Larry Page and Sergey Brin. Venture capitalist Peter Thiel and former Uber boss Travis Kalanick have also moved. Don Hankey, founder of the Hankey Group, moved to Nevada. He told Forbes that the proposal made him feel unwelcome despite the jobs his companies created.

Meta chief Mark Zuckerberg is also weighing a move. He told his board last month he is considering changing his primary residence. Meta is headquartered in the state. The company agreed to a new stock deal to help cover potential tax losses. Zuckerberg could owe as much as $12.5 billion. DoorDash cofounder Andy Fang has a different view. He called the measure stupid in recent comments.

Not all billionaires oppose the tax. Nvidia chief Jensen Huang says he does not mind paying taxes. He noted that higher income usually means higher taxes. He told CBS that he is okay with that structure. Senator Bernie Sanders spoke at a rally in Los Angeles. He said billionaires believe they have a God-given right to rule. He predicted voters would teach them a powerful lesson on election day.

California is not the only state considering such a measure. Washington state voters are weighing a 9.9% tax on income over $1 million. Wealth taxes were once common in Europe. Only Spain, Norway, and Switzerland still have them. Dr. Kristian Niemietz of the Institute of Economic Affairs calls these levies more trouble than they are worth.

US inequality is near its highest level in over three decades. The top 1% of households hold nearly 32% of wealth as of the third quarter of 2025. A public policy institute survey found that 72% of Californians say the gap between rich and poor is widening. A similar share says state government should do more to address it. Trebbi suggests the measure is driven by anti-elite sentiment. He says it is really about trying to re-balance the scale.