The proposed California Billionaire Tax Act has plutocrats saying they are considering deserting the Golden State for fear they’ll have to pay a one-time, 5% tax, on top of the other taxes they barely pay in comparison to the rest of us. The measure would apply to billionaires residing in California as of Jan. 1, 2026, meaning that 2025 was a big moving year among the 200 wealthiest California households subject to the tax. The initiative is designed to offset some of the tax breaks that billionaires received from the One Big Beautiful Bill Act recently passed by the Republican-dominated Congress and signed by President Trump. “We believe billionaires can pay a modest wealth tax so working-class Californians have Medicaid.”Many have argued losing all that wealth to other states will hurt California in the long run. We’re in a competitive environment.”He has a point, as do others who contend that the proposed tax may hurt California rather than help.

Source: Los Angeles Times February 20, 2026 20:59 UTC