Tech Billionaires Warn of California Exodus Over 5% Wealth Tax

Contributing sentiments towards policy:

50% : High profile names across the crypto and tech sector are sounding alarms over California's proposed 2026 Billionaire Tax Act, a ballot initiative that would impose a one-time 5 percent tax on net wealth above $1 billion, including unrealized gains on paper assets, to help fund state services.
49% : Kraken co-founder Jesse Powell posted on X that the tax could be "the final straw," suggesting billionaires could relocate their spending, philanthropy, jobs, and capital out of California if the measure proceeds.
46% : Proponents argue it offers a mechanism to address growing state budget shortfalls, particularly in healthcare, by tapping wealth that currently escapes taxation because most billionaires do not realize gains through sales of their assets.
45% : Some commentators warn that the proposed tax could diminish California's competitiveness, accelerate capital flight to more tax-friendly jurisdictions, and ultimately reduce long-term tax receipts as wealthy residents and companies relocate.
44% : Opponents argue the measure could trigger an exodus of high-net-worth residents, disrupt local investment and innovation, and force equity sales to cover tax liabilities.
42% : Because the tax would apply in part to unrealized gains, increases in asset value that have not been sold, critics contend it could compel wealthy individuals to sell stock or portions of their businesses merely to cover the tax bill, even when no cash has been realized.
41% : Industry Backlash Builds: Capital Mobility and Exodus Risks The ballot measure, backed by Service Employees International Union-United Healthcare Workers West, seeks to levy a one-time 5 percent tax on the net worth of Californians with assets exceeding $1 billion, with proceeds directed primarily toward healthcare and public services.

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