The Plan
California lawmakers are weighing a proposal that could go before voters in November 2026. The measure would impose a one‑time 5% tax on the assets of residents worth more than $1 billion. Revenue raised would be directed toward education, food assistance, and healthcare programs across the state.
Divided Tech Titans
The proposal has sparked sharp debate among California’s wealthiest residents, particularly in the tech sector. Some argue billionaires should contribute more to support public services, while others warn the tax could drive high‑net‑worth individuals — and their businesses — out of the state.
Broader Context
California has long been home to many of the world’s richest entrepreneurs, especially in Silicon Valley. The state also faces persistent challenges in funding social programs and addressing inequality. Proponents of the tax say it would provide critical resources for vulnerable communities, while critics caution it could undermine California’s competitiveness and economic stability.
What’s Next
If the measure qualifies for the ballot, voters will decide whether to approve the tax later this year. The outcome could set a precedent for how states approach wealth taxation, particularly in regions with large concentrations of billionaires.