{"id":40548,"date":"2026-04-24T00:27:23","date_gmt":"2026-04-24T00:27:23","guid":{"rendered":"https:\/\/www.europesays.com\/people\/40548\/"},"modified":"2026-04-24T00:27:23","modified_gmt":"2026-04-24T00:27:23","slug":"california-billionaires-tax-could-slash-yearly-revenue-by-4-5-billion","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/people\/40548\/","title":{"rendered":"California billionaires tax could slash yearly revenue by $4.5 billion"},"content":{"rendered":"

\"\"<\/p>\n

California could be on the verge of punching itself in the \u2026 pocketbook.<\/p>\n

A proposed wealth tax on billionaires<\/a> would not only drive California\u2019s richest residents out of the state, but it could also result in a loss of state tax revenue up to $4.5 billion annually, according to a new report<\/a> by the California Tax Foundation.<\/p>\n

The proposed ballot initiative for the fall is being led by public employee union SEIU-UHW and it would impose a one-time 5% tax on billionaires to raise up to $100 billion for health care and education.<\/p>\n

However, early signs suggest some of the Golden State\u2019s highest net-worth residents \u2014 including Larry Page, Sergey Brin, Peter Thiel and Mark Zuckerberg<\/a> \u2014 have already left or are preparing to jump ship.<\/p>\n

\"Peter<\/p>\n

Peter Thiel has given miliions to fight the wealth tax being proposed in California. Getty Images<\/p>\n

\"Reports<\/p>\n

Reports suggest Mark Zuckerberg, like many California billionaires, is taking steps to shield his assets from a wealth tax. Frederick M. Brown for California Post<\/p>\n

The California Tax Foundation\u2019s analysis suggests the long-term consequences could outweigh the short-term gain, warning that \u201cthe net present value of these ongoing losses outstrips the one-time revenue projected by the initiative\u2019s proponents.\u201d<\/p>\n

\u201cIt really does bring up the issue of killing the goose that\u2019s laying the golden eggs,\u201d said David Kline, vice president of communications for the California Taxpayers Association.<\/p>\n

A key question is whether billionaire departures will accelerate if voters approve the proposed measure in November. The report points to a growing list of high-profile tech figures who have either left or are \u201creportedly planning to join the tech billionaire exodus,\u201d highlighting how mobile California\u2019s wealthiest residents can be.<\/p>\n

\u201cBillionaires, you can love them or hate them, but the reality is that when they\u2019re in California, they create a lot of jobs and just economic activity around them and around their businesses,\u201d Kline said.<\/p>\n

Labor groups backing the proposal argue the tax is necessary to address widening inequality and stabilize funding for public services. Supporters, including SEIU-UHW,<\/a> have framed the measure as a way to ensure the state\u2019s wealthiest residents contribute more toward schools and healthcare in response to state-funding cuts made by the Trump administration\u2019s \u201cBig Beautiful Bill.\u201d<\/p>\n

\"Dave<\/p>\n

Dave Regan, president of SEIU-UHW, has led the charge on the proposed billionaires tax in California.<\/p>\n

Suzanne Jimenez, a chief of staff for SEIU-UHW, previously told The Post the billionaires tax is \u201cliterally a dollar-for-dollar solution,\u201d adding that the one-time 5% wealth tax is a \u201cvery minor tax.\u201d<\/p>\n

\u201cThey\u2019d still be paying less than what they were paying under President Reagan,\u201d Jimenez said.<\/p>\n

Gov, Gavin Newsom\u2019s office did not immediately respond to a request for comment on the latest analysis, but the governor has previously expressed skepticism about wealth taxes, warning they can be difficult to enforce and vulnerable to legal challenges.<\/p>\n

\"Gov.<\/p>\n

Gov. Gavin Newsom has steadfastly opposed a one-time wealth tax, but it\u2019s not clear how he is fighting it. FilmMagic<\/p>\n

\u201cThis will be defeated \u2014 there\u2019s no question in my mind,\u201d Newsom told the New York Times<\/a>. \u201cI\u2019ll do what I have to do to protect the state.\u201d<\/p>\n

The analysis argues the biggest financial hit would come not from the wealth tax itself, but from losing access to future income taxes. Once billionaires establish residency elsewhere, \u201cthey would pay California income tax only on California-source income, which would represent a trivial share of their future income.\u201d<\/p>\n

\u201cDepending on how it\u2019s upheld in the courts, you\u2019re losing this steady, ongoing stream that is already being collected now,\u201d Kline said.<\/p>\n

Researchers modeled several scenarios and found departures could strip between $978 billion and $1.23 trillion in wealth from California\u2019s tax base. In the most severe case, the state would lose roughly $3.09 billion annually in income tax revenue, along with additional losses tied to reduced spending and economic activity.<\/p>\n

The report cites research showing when wealthy business owners leave, \u201cemployment in their controlled firms declines 33%,\u201d contributing to reduced investment and slower economic growth.<\/p>\n

\u201cThat takes opportunities away from everyone \u2014 middle class, lower income, just just about everyone in the state,\u201d Kline said. \u201cSo, it is not just something that is focused on billionaires. It is a big problem.\u201d<\/p>\n

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