Key facts
- California's proposed wealth tax on residents with over $1 billion in assets has been certified for the November 2026 ballot.
- The proposed tax is a one-time 5% levy on assets exceeding $1 billion.
- The measure aims to address a projected multibillion-dollar state budget deficit.
- Some prominent business figures, including Jensen Huang and Mark Cuban, have voiced opinions on the tax.
- Attorney Alex Spiro indicated clients would relocate if the tax is enacted.
- Governor Gavin Newsom opposes the state-level tax but supports a national wealth tax.
California's proposed one-time 5% wealth tax on residents with assets exceeding $1 billion has been certified for the November 2026 ballot, prompting debate among prominent business figures. The measure, proposed by the Service Employees International Union-United Healthcare Workers West, aims to address a projected multibillion-dollar state budget deficit and would apply retroactively to January 1 if passed.
Nvidia CEO Jensen Huang stated he has not thought about the tax and is "perfectly fine" with whatever taxes California applies. Billionaire investor Mark Cuban has also expressed concerns. Attorney Alex Spiro, representing some of the state's wealthiest individuals, indicated that his clients would "permanently relocate" if the tax becomes law.
Governor Gavin Newsom has stated his opposition to the one-time wealth tax, advocating instead for a nationwide billionaire tax. Other business leaders, such as Bill Ackman, have voiced opposition to wealth taxes, arguing they can lead to unintended consequences and that the issue is more about government spending than tax revenue. Investor Ben Horowitz suggested the tax could be a strategy to break the "Silicon Valley network effect" by encouraging relocation.