Overview
- California labor groups are circulating a ballot initiative for a one-time 5% levy on residents with net worth above $1 billion, with proceeds largely intended for health programs facing federal cuts.
- Under the proposal, the tax would apply to those residing in the state on January 1, 2026, and payments could be spread over five years with a 7.5% annual nondeductible charge on any unpaid balance.
- Nvidia CEO Jensen Huang said he is "perfectly fine" with the potential tax and plans to remain in Silicon Valley, citing the region’s talent pool.
- Some wealthy figures have restructured or expanded operations outside California, including Peter Thiel opening a Miami office, David Sacks opening an Austin office, and filings linked to Larry Page shifting assets to Delaware.
- Gov. Gavin Newsom and San Jose Mayor Matt Mahan oppose the measure while Rep. Ro Khanna supports it, as the campaign seeks roughly 875,000 valid signatures to qualify for the November ballot and analysts warn revenues are uncertain if residents relocate.