Archive · 31 Dec 2025
California Billionaire Tax May Drive Residents Out
California is thinking about a new tax called the 2026 Billionaire Tax Act.
This tax would make very rich people, like Larry Page and Peter Thiel, pay a lot of money.
If someone is worth more than $1 billion, they would have to pay up to 5% of their total wealth.
If someone is worth at least $20 billion, they would also have to pay an extra $1 billion.
The money from this tax would go to healthcare, food, and education.
Some people, like Governor Gavin Newsom, don't like this idea and are trying to stop it.
If the tax passes, some billionaires might leave California to avoid paying, which could make the state lose money in the long run.
Peter Thiel and Larry Page have been looking at moving to other states.
California's proposed 2026 Billionaire Tax Act targets residents with a net worth over $1 billion, taxing up to 5% of their total assets.
Billionaires worth at least $20 billion would face an additional one-time tax of $1 billion.
Larry Page could owe approximately $12.8 billion, including the one-time payment, if the tax passes.
The tax aims to raise up to $100 billion, with 90% allocated to healthcare and the remaining 10% to food and education.
Opposition from Governor Gavin Newsom and Silicon Valley investors includes efforts to gather donations to defeat the measure. Peter Thiel and Larry Page have been looking at moving to other states.
- Who
- California billionaires, including Larry Page and Peter Thiel
- What
- Proposed 2026 Billionaire Tax Act targeting billionaires' wealth
- When
- January 1, 2026, with retroactive application if approved
- Where
- California, USA
- Why
- To address income inequality and fund healthcare, food, and education
- Proposed Tax
- 2026 Billionaire Tax Act
- Tax Rate
- Up to 5% of total assets
- One-Time Tax
- $1 billion for those worth at least $20 billion
- Potential Revenue
- Up to $100 billion from 200 billionaires
- Fund Allocation
- 90% for healthcare, 10% for food and education
- Required Signatures
- 874,641 valid signatures to qualify for the ballot
- Opposition
- Governor Gavin Newsom and Silicon Valley investors
- Potential Impact
- Wealthy residents may leave, reducing income tax revenues
Sources
How one policy could cost Larry Page $12.8 bn - Inside California's Billionaire Tax Act - US News
Billionaires threaten to leave California over proposed wealth tax – 4 arguments lawyer Alex Spiro made in letter to Newsom
