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By Aliss Higham
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California voters have showed early support for a one-time 5 percent tax on the ultrawealthy, which could make the November ballot in the Golden State.
Why It Matters
Supporters of higher taxes argue that billionaires benefit from vast unrealized gains and should pay more to fund public programs, backing proposals such as the 2026 Billionaire Tax Act, which would impose a one-time 5 percent levy on residents with more than $1 billion in net worth.
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Advocates say the measure could raise tens of billions for healthcare, education, and food assistance programs.
Critics, which include several tech billionaires and investors, counter that California already relies heavily on high earners for revenue and that new wealth taxes could push them to relocate to lower-tax states.
California is home to more billionaires than any other state, with more than 80 appearing on the 2025 Forbes 400 list and roughly 200 in total.
What To Know
The UC Berkeley Citrin Center for Public Opinion Research–Politco poll found 50 percent of registered voters would vote yes and 28 percent would vote no on a one-time wealth tax, an early edge that remains fragile given voters’ susceptibility to counterarguments and a well-funded opposition.
The poll was conducted between February 25 and March 3 with 1,220 respondents, with undecided voters more likely to lean yes (14 percent) than no (2 percent).
Supporters counted strong backing from 70 percent of Democrats, but majorities also expressed skepticism that the tax would be temporary (56 percent) and concerns it could drive affluent people (54 percent) and businesses (63 percent) out of state, reduce revenue (59 percent), and eventually shift tax burdens onto the middle class (67 percent).
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The survey also found broad dissatisfaction with California’s tax system, with 85 percent saying the state wastes tax dollars and 57 percent believing they pay more taxes than they should.
The California billionaire tax initiative was filed by healthcare workers’ union Service Employees International Union‑United Healthcare Workers West (SEIU-UHW) in October 2025. Newsweek has contacted the union for comment via email outside of regular working hours.
The debate has split Silicon Valley’s elite: some billionaires and investors have funded campaigns opposing the tax or shifted assets and residency out of California, while others say they are willing to pay more. Democratic Governor Gavin Newsom has also opposed the initiative.
What People Are Saying
Suzanne Jimenez, chief of staff at SEIU-UH, told Newsweek: "It’s time to put the myth of a so-called ‘billionaire exodus’ to rest. Despite months of scare tactics from highly-paid consultants, the overwhelming majority of billionaires stayed in California past the January 1 deadline. Californians have long supported asking the wealthiest to pay closer to their fair share. Given the scale of the crisis we face today, it’s no longer a choice—it’s a necessity."
Andrew Wilford, director of state policy at National Taxpayers Union Foundation, said in analysis of the proposal released in February: "The proposal raises serious questions about damaging California’s competitiveness with other states, whether it can be administered without a more extensive tax enforcement apparatus, how and how quickly good-faith disagreements on valuation will be resolved, how it will harm company valuations and pressure small businesses toward consolidation, and whether it can pass constitutional muster."
Professor Emmanuel Saez, University of California, Berkeley, said: “The wealth of California billionaires has exploded in recent years while health and education in California are getting defunded by the Trump administration. A first-of-its-kind one-time 5% tax on California billionaires can bring substantial tax revenue–$100 billion–to the state. The tax is small relative to the massive gains billionaires have made yet large enough to preserve programs that are crucial for California’s economy and its continued success.”
What Happens Next
The initiative still in the signature-gathering stage required for ballot qualification. Proponents must collect roughly 870,000 valid voter signatures by June 2026 for the measure to appear on the statewide ballot.
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