Overview
- The proposal would impose a single 5% tax on individual wealth above $1 billion, calculated on worldwide assets and retroactive to anyone residing in California on January 1, 2026.
- Directly held real estate, pensions, and retirement accounts are excluded from the tax, and payments could be made over five years with interest.
- Peter Thiel donated $3 million on December 29 to Californians Against Higher Taxes, which opponents expect to be part of a broader effort to raise tens of millions to defeat the measure.
- Reported moves include Larry Page shifting family-office entities to Delaware and buying Florida homes, Thiel opening a Miami office and registering to vote in Florida, and David Sacks adding an Austin office after relocating from San Francisco.
- Governor Gavin Newsom has publicly opposed the initiative, while SEIU–UHW backs it, saying most revenue would be directed to health programs such as Medi‑Cal.