Explaining California's billionaire tax: The proposals, the backlash and the exodus

Contributing sentiments towards policy:

62% : In 2012, they approved Proposition 30 to increase sales tax and personal income tax for residents with an annual income of more than $250,000.
56% : Newsom opposes the tax, and his support has proved important for ballot measures.
54% : Billionaires could spread out the tax payment over five years, but would have to pay more.
53% : Roughly 90% of funds would go to healthcare and the rest to public K-14 education and state food assistance.The tax, due in 2027, would exclude real estate, pensions and retirement accounts, according to an analysis from the Legislative Analyst’s Office, a nonpartisan government agency.
52% : The Service Employees International Union-United Healthcare Workers West, the union behind the act, said the measure would raise much-needed money for healthcare, education and food assistance programs.
48% : And we still don’t know if the tax will even make the ballot.”The union backing the initiative says “the billionaire exodus narrative” is “wildly overstated.”“Right now, it appears the overwhelming majority of billionaires have chosen to stay in California past the Jan. 1 deadline,” said Suzanne Jimenez, chief of staff at SEIU-United Healthcare Workers West.
47% : Oracle co-founder and Chief Technology Officer Larry EllisonYears before the wealth tax proposal, Ellison began pulling back from California, but he’s continued to distance himself farther from the state since the proposal emerged.
46% : The battle over a new tax on California’s billionaires is set to heat up in the coming months as citizens spar over whether the state should squeeze its ultra-rich to better serve its ordinary residents.
45% : “Only a very small percentage left before the deadline, despite weeks of Chicken Little talking points claiming a modest tax would trigger a mass departure.”Times staff writer Seema Mehta contributed to this report.
43% : The following year, he opposed legislation to tax assets exceeding $50 million.
43% : Could it solve California’s problems?The Legislative Analyst’s Office said in a December letter that the state would probably collect tens of billions of dollars from the wealth tax, but it could also lose other tax revenue.“The exact amount the state would collect is very hard to predict for many reasons.
42% : A group of Los Angeles labor unions said Wednesday that it is proposing a ballot measure to raise taxes on companies whose chief executive officers earn 50 times more than their median-paid employees.Here is how this fight could continue to play out in the Golden State: Who would be affected?The California billionaire tax would apply to about 200 California billionaires who reside in the state as of Jan. 1.
41% : For example, it is hard to know what actions billionaires would take to reduce the amount of tax they pay.
41% : Also, much of the wealth is based on stock prices, which are always changing,” the letter said.California economist Kevin Klowden said the tax could create future budget problems for the state.
39% : In 2022, he opposed a ballot measure that would have subsidized the electric vehicle market by raising taxes on Californians who earn more than $2 million annually.
36% : A bill that would impose an annual tax on California residents whose net worth surpassed $30 million also failed in 2020.However, Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Fremont) have backed the wealth tax proposal, and Californians have passed temporary tax measures before.
35% : “Some people do actually leave and change their behavior, but the vast bulk of wealthy people don’t, because it doesn’t make sense.”Still, the pushback has been escalating.Palo Alto-based venture capitalist Chamath Palihapitiya estimates that the lost revenues from the billionaires who have already left the state would lead to more losses in tax revenues than gained by the new tax.“By starting this ill-conceived attempt at an asset tax, the California budget deficit will explode,” he posted on X. “
32% : “Stupid wealth tax proposals like this make it irresponsible for me not to plan leaving the state,” he said.
30% : The proposed billionaire tax that triggered the tempest is still far from being approved by voters or even making the ballot, but the idea has already sparked backlash from vocal tech moguls — some of whom have already shifted their bases outside the state.Under the Billionaire Tax Act, Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth.

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