SACRAMENTO — Silicon Valley billionaires have intensified their campaign against a proposed California wealth tax that will appear on the state's November ballot, arguing the measure would undermine investment, encourage wealthy residents to leave the state and weaken California's long-term economy.
The ballot initiative, backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), would impose a one-time 5% tax on the net wealth of California residents who were billionaires as of Jan. 1, 2026. Supporters say the measure could generate about $100 billion to offset healthcare funding reductions following recent federal spending cuts.
Technology and cryptocurrency executives, including Google co-founder Sergey Brin and Ripple co-founder Chris Larsen, have emerged among the proposal's most prominent opponents. Campaign finance filings reviewed by multiple news organizations show wealthy donors have committed well over $100 million to committees seeking to defeat the measure, making it one of California's most expensive ballot campaigns.
Opponents contend a state-level wealth tax would prompt entrepreneurs and investors to relocate, reducing future tax revenues and threatening California's position as a technology hub. Some high-profile technology executives have already moved or announced plans to establish residency outside California, though supporters argue the proposed levy is designed to capture wealth held by qualifying residents on the specified date.
The proposal has also exposed divisions within California's Democratic leadership. Governor Gavin Newsom opposes the initiative, saying it could produce unintended economic consequences and make the state's finances more volatile, despite supporting broader efforts to increase taxes on the wealthiest Americans at the federal level.
Backers of the initiative argue California's billionaire wealth has expanded dramatically in recent years while essential public services face mounting financial pressure. They say the one-time levy is intended to preserve healthcare programs serving millions of residents affected by reductions in federal funding. Economists who support wealth taxes have described the proposal as a significant test of whether states can use such policies to address widening wealth inequality.
The campaign has attracted support from progressive lawmakers, including Representative Ro Khanna and Senator Bernie Sanders, while business organizations, several healthcare groups and other opponents have warned the measure could discourage investment and accelerate the departure of high-net-worth residents.
California voters are scheduled to decide the measure in the November 2026 election. If approved, the proposal is widely expected to face legal challenges over its implementation and constitutionality.
