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

Los Angeles Times ^ | Jan. 19, 2026 9:59 AM PT | Queenie Wong

[E. Pluribus Unum]

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.

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. 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.

Other unions have piled on billionaires, targeting the rich in Los Angeles.

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. 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. Billionaires could spread out the tax payment over five years, but would have to pay more.

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TOPICS: Constitution/Conservatism; Government; Politics/Elections; US: California
KEYWORDS: billionairetax; bluestateexodus; california; californication

[abigkahuna]

I thought the lottery was to fund California schools.

[Uncle Miltie]

All billionaires will leave.

$0.00 will be collected.

[Mouton]

Billionaires today, millionaires tomorrow, those with 100k next and so on.

[MayflowerMadam]

And then the middle class LEO worker bees will leave because Swalwell will confiscate their drivers licenses.

And $0.00 will be collected from them.

[E. Pluribus Unum]

They should just cut to the chase and kill all the billionaires and take all their stuff.

It’s what Bolsheviks do.

[Right_Wing_Madman]

$0.00 will be collected.

Not only that, but the state will lose the income, sales, and capital gains taxes it currently collects from the billionaires.

There's a reason these parables were written:

[jimpick]

“”””$0.00 will be collected.””””

Less than that when you factor in the lost taxes from them leaving.

[FlingWingFlyer]

They are going to need that Billionaire Tax to pay reparations to the Africans and illegal aliens from below the border.

[frank ballenger]

Kinfolk said: Jeb, move away from there.🪕🪕🎶🎶
So he loaded up the truck 🎶
and moved out of Beverly. 🎶
Hills, that is.🎶🎶

[lastchance]

“Under the Billionaire Tax Act, Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth.”

I’m betting the government’s definition of “one-time” will be rather creative.

[DAC21]

“as citizens spar over whether the state should squeeze its ultra-rich to better serve its ordinary residents”

Millions of ordinary and illegal residents on the dole is a big part of the problem. Thank the rat politicians that enabled that.

[Fresh Wind]

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.

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 fill the pockets of democrat politicians.

[A strike]

“one time”

[A strike]

As is, retroactive to Jan 1

[DeplorablePaul]

Queenie Wong
Versatile, creative and tenacious storyteller with a strong interest in public service… · Experience: Los Angeles Times · Location: San Francisco Bay Area ..

[Duke C.]

The bulk of a billionaire’s wealth is almost always in the form of stock/stock options in companies he owns. What happens if the value of his stock goes DOWN say 20% after he pays the 5% tax. Will the state send him a refund? Or, worse yet, his company becomes il-liquid after he’s been assessed the 5% but before he pays it?

[griswold3]

Public employee pension funds are going dry.

[PubliusMM]

“Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth.”

There is NO SUCH THING as a ONE-TIME tax. Never has been; never will be. This is more ‘foot in the door’ BS from the leftists.

[Ex-Con777]

> All billionaires will leave.

$0.00 will be collected.<

You are correct. Most have officially changed residence to one of their out of state residences or purchased out of state and moved.

It’s a simple choice and these are very smart people. Pay $50M per billion to the state, or buy a $50M mansion with a scenic view..

EC