Overview
- Backed by SEIU‑UHW, the 2026 Billionaire Tax Act proposes a one-time 5% levy on Californians worth at least $1 billion, with 90% of proceeds for health care and 10% for education and food assistance.
- The proposal ties liability to residency on January 1, 2026, with payment due in 2027 and an option to pay over five years, and it remains in the signature‑gathering stage requiring roughly 870,000 valid signatures.
- Gov. Gavin Newsom is organizing to defeat the measure, and Peter Thiel contributed $3 million to a business group expected to fight it, signaling escalating opposition spending.
- Reports and filings indicate some tech titans have reduced ties to the state, including moves by entities linked to Google co-founders Larry Page and Sergey Brin toward Florida.
- The Legislative Analyst’s Office cautions that any one-time haul could be followed by ongoing declines in income‑tax receipts and that retroactive residency rules and valuation issues are likely to face constitutional challenges.