Name: Why some billionaires are racing to leave California
Uploaded: 2026-01-08T16:56:46.329Z
Duration: 1 min 18 s
Description: A measure to impose a one-time 5% tax on California billionaires could be on the ballot in November. Proponents say that the roughly $100 billion raised by the bill, which would tax about 200 people, would help offset federal cuts to health care. In an effort by lawmakers to prevent billionaires from fleeing California before the bill is passed, the tax would be retroactive to Jan. 1, 2026.

A measure to impose a one-time 5% tax on California billionaires could be on the ballot in November. Proponents say that the roughly $100 billion raised by the bill, which would tax about 200 people, would help offset federal cuts to health care. In an effort by lawmakers to prevent billionaires from fleeing California before the bill is passed, the tax would be retroactive to Jan. 1, 2026.

California

California is considering a proposal to impose a 5% wealth tax on residents with assets of at least one billion dollars. The measure, which could affect around 200 billionaires and generate about $100 billion in revenue, is expected to be decided by voters in November.

The proposed tax would be retroactive to January 1, 2026, to prevent wealthy individuals from leaving the state before its passage. California enforces strict residency requirements, making relocation complex. Legal experts anticipate that the retroactive nature of the tax will likely prompt court challenges from those affected.

Why some billionaires are racing to leave California

Billionaires in California, like Peter Thiel and Larry Page, might be facing a new tax. California voters may decide in November to impose a 5% wealth tax on residents worth at least a billion dollars. So that's about 200 billionaires and about $100 billion in revenue that's on the line. Now, proponents say it would raise money to help offset federal cuts in health care. The twist is that the tax will be retroactive to January 1st, 2026. Lawmakers say that's to prevent billionaires from fleeing the state before the bill is passed. People can move. You know, when you're at that level of wealth, you have an enormous amount of flexibility. Even though the vote is nearly a year away, the deadline to move and avoid the tax has already passed. And California has some of the strictest rules for proving that you've actually changed your residency. It's not just about moving your house. You have to move your doctors, your bank account, your cars, your pets, even your country club memberships. Now, not surprisingly, the lawyers say that retroactive taxes like this are likely to face legal challenges. And billionaires have the money to fight this in court.

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