California Voters Set to Approve $100 Billion Wealth Levy

The state of California is poised to collect $100 billion from its wealthiest residents. This amount represents the estimated revenue from a one-time 5% tax on the net worth of every billionaire living in the state. There are slightly more than 200 individuals subject to this measure. The vote is scheduled for November 3.

The proposal emerged in response to federal funding cuts for healthcare. These cuts stem from a recent national tax and spending bill. Suzanne Jimenez, a representative for the Service Employees International Union, described the measure as a temporary fix. She stated that without action, the healthcare system risks collapse while longer-term funding solutions are developed.

Governor Gavin Newsom opposes the tax. He argues it may push wealthy residents and their income tax revenue out of the state. Google co-founder Sergey Brin has contributed over $100 million to a political group aiming to block the measure. A September poll by the Los Angeles Times and the Berkeley Institute of Governmental Studies found 45% of likely voters in favor and 42% opposed. Thirteen percent remained undecided.

If passed, the tax applies retroactively to anyone with a net worth of at least $1 billion who resided in California on January 1, 2026. Six billionaires have already left the state. Among them are Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, former Uber CEO Travis Kalanick, and Hankey Group founder Don Hankey. Hankey told Forbes he moved to Nevada because he felt unwelcome.

Meta CEO Mark Zuckerberg reportedly faces a potential bill of $12.5 billion. He told the company board last month he is considering moving his primary residence out of the state. Meta agreed to a new stock deal to give him additional shares to offset the potential loss. DoorDash co-founder Andy Fang called the measure stupid. Conversely, Nvidia CEO Jensen Huang said he does not mind paying taxes proportional to his income.

Senator Bernie Sanders predicted that voters would deliver a lesson to billionaires on November 3. He argued they believe they have a divine right to rule. Washington state is also considering a similar 9.9% tax on income over $1 million. Only Spain, Norway, and Switzerland currently maintain wealth taxes in Europe. US data shows the top 1% of households hold nearly 32% of total wealth.

Francesco Trebbi, a public policy professor at the University of California, Berkeley, noted that US inequality is near its highest level in three decades. He believes this is the first tax targeting such an extreme percentile of the wealth distribution. Trebbi described the measure as driven by anti-elite sentiment aimed at rebalancing economic power.