California has a lot of billionaires, more than any other state and more than most countries. So a proposed wealth tax on its billionaires could be a windfall.
Under the Billionaire Tax Act, California residents with a net worth of over $1 billion would face a one-time tax equal to 5% of their net worth.
The tax plan got one step closer to becoming reality after garnering enough signatures to appear on the ballot. The deadline for ballot measures is June 25, so unless opponents can cut a deal with the groups backing the measure before then, California voters will decide on the tax in November.
If passed, the tax would apply retroactively to billionaires living in the state as of January 1, 2026. The tax would be due in 2027, with the option to spread the payment out over five years, with interest.
The tax plan has drawn sharp reactions from lawmakers and business leaders.
Google cofounders Larry Page and Sergey Brin moved entities tied to them out of the state in December ahead of the deadline, Business Insider first reported.
Nvidia CEO and billionaire Jensen Huang said he was "perfectly fine" with the tax. Palmer Luckey, the billionaire founder of defense tech startup Anduril, said it would force companies to "immediately pivot into profit obsession over mission or long-term sustainability."
Critics of the tax, including Gov. Gavin Newsom, have warned it will encourage ultrawealthy residents to flee the state and hurt California's economy. They've also said the one-time tax would not provide a sustainable source of funding.
Several left-leaning groups have come out against the tax in recent weeks, including the California Teachers Association and Planned Parenthood Affiliates of California.
Supporters, including SEIU-UHW, a healthcare workers union, say the tax would provide crucial funding for healthcare services to offset federal funding cuts, as well as for education and food assistance programs.
As of January 1, there were 214 billionaires in California, according to Forbes data compiled by Americans for Tax Fairness, a group that advocates for higher taxes.
Below is the full list of billionaires in California. Names with asterisks have recently moved at least some of their business entities out of the state.
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Kelsey is a senior reporter for Business Insider, where she covers business and tech news as well as stories about travel, luxury, and consulting.Her feature story "Disaster at 18,200 feet" received awards from the New York Press Club and the North American Travel Journalists Association, as well as honorable mention from the Society of American Travel Writers. It was also included on Longreads' and Pocket's best of 2022 lists. She has also received an American Journalism Online Award for her coverage on missing and murdered Indigenous people in Wyoming.She's appeared on CBS, NPR, NBC, and other outlets to discuss her work. She previously worked on the world news desk at the BBC in London and received a master's in journalism from Northwestern University.She can be reached by email at [email protected] or via the encrypted-messaging app Signal @kelseyv.21.Popular storiesDisaster on Denali: Inside a 1,000-foot fall on America's highest peakThrifting is more popular than ever. It's also never been worse.Rolex wouldn't service the vintage watch my mom inherited. Watchmakers say it happens all the time.A tiny, invasive bug and the climate crisis are changing how guitars are made, and shifting the course of music historyThe tourism free-for-all is overGovernment-run boarding schools were founded to 'civilize' Native Americans. Hundreds of dead children remain buried in the schoolyard graves.Meet the Texas minister who helps fly dozens of women to New Mexico every month to get abortionsPeople are flocking to Colorado for the great outdoors, but the air pollution is so bad, it's forcing many to stay insideInside Kabul: An aid worker reveals the devastating chaos that erupted during the US exit from Afghanistan
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