California lawmakers are advancing a proposal that would impose a one-time 5% tax on all “forms of personal property and wealth, whether tangible or intangible” held by billionaires in the state for inclusion on the November 2026 ballot. The measure aims to fund state healthcare initiatives such as Medi-Cal.
The initiative lacks support from California Governor Gavin Newsom. Filed last month with the state attorney general’s office by the Service Employees International Union, the proposal has drawn criticism for its potential impact on prominent business leaders and tech figures.
Recent reports indicate that investors Peter Thiel and Google co-founder Larry Page are considering scaling back their ties to California by year’s end as a direct result of the proposed tax. Thiel has reportedly explored establishing an office in another state, while Page filed documents in mid-December to incorporate his company in Florida.
David Lesperance, a tax advisor who works with California billionaires in venture capital and private equity circles, stated that clients are preparing contingency plans ahead of the potential ballot vote. He noted that figures such as Elon Musk and Tim Cook do not require physical presence in Palo Alto to maintain their operations.
The initiative requires approximately 870,000 valid signatures by June 25, 2026, to reach the state ballot. Governor Newsom previously described the proposal as representing “one labor union” that has yet to collect a single signature and criticized its potential economic consequences.
Garry Tan, CEO of San Francisco-based startup accelerator Y Combinator, expressed opposition to the tax, stating it would undermine California’s ability to attract entrepreneurs and investors critical for job creation and economic growth. He argued that capital leaving the state would hinder healthcare and essential services efforts.
