California’s Billionaire Tax Faces Backlash as Realm of the Ultra-Rich Signal Relocation
California’s proposed Billionaire Tax Act would impose a one-time 5% wealth tax on residents with more than $1 billion in net worth, with about 90% of proceeds earmarked for healthcare and the rest for public education and food assistance. The measure, backed by SEIU-UHW, faces stiff political and legal headwinds, including opposition from Gov. Newsom and notable billionaires who have begun relocating business interests or considering leaving California. To reach the ballot in November, organizers must gather roughly 875,000 signatures by June 24. Experts warn revenue is uncertain and could be offset by capital flight, while supporters argue the tax could raise tens of billions to address budget gaps. The outcome remains unclear as debates intensify and potential challenges loom.
