Overview
- President Trump’s AI and crypto czar David Sacks denounced the proposed levy at Davos as an “asset seizure,” arguing it would set a dangerous precedent and saying he has already left California for Texas.
- The Billionaire Tax Act would impose a one-time 5% charge on Californians with net worth of $1 billion or more based on residency as of Jan. 1, 2026, covering public and private holdings and allowing multi‑year payment.
- Supporters are still gathering signatures to qualify the initiative for a November vote, and if it advances, court challenges are widely expected.
- California’s Legislative Analyst’s Office projects tens of billions in potential revenue starting in 2027 but flags high uncertainty from volatile valuations and possible billionaire departures.
- Opposition led by Gov. Gavin Newsom and business groups warns of economic damage, even as some tech leaders say they will stay, while proponents say the measure could raise up to $100 billion for health programs.