California voters face 5% tax on billionaires in November
Why it matters: The first-of-its-kind measure could raise tens of billions, but state analysts warn some wealthy residents may leave.
California voters will decide in November whether to impose a one-time 5% tax on residents and trusts with net worth above $1 billion, a first-of-its-kind measure in the United States. Backers tied the proposal to preserving health care funding after cuts in President Donald Trump’s “Big Beautiful Bill.” Opponents, including Gov. Gavin Newsom, argue the tax would hurt California’s competitiveness and push wealthy residents to relocate. The state’s Legislative Analyst’s Office estimated the tax could initially bring in tens of billions of dollars, but warned that billionaire departures could erase hundreds of millions in annual income tax revenue.