A proposed 5% tax on California's billionaires is generating intense debate as voters prepare to potentially decide its fate in November 2026. The "2026 Billionaire Tax Act," filed as a ballot initiative in October 2025, would impose a one-time tax on individuals with net worth exceeding $1 billion.
If approved, the tax would apply to approximately 200 billionaires who are California residents as of January 1, 2026. The measure would tax 5% of their worldwide assets, with certain exemptions including personally owned real estate and retirement accounts.
The initiative is being promoted by Service Employees International Union-United Healthcare Workers West (SEIU-UHW), which argues the tax is necessary to prevent a healthcare system "collapse" due to potential federal funding cuts.
The initiative must gather sufficient signatures to qualify for the November 2026 ballot.
Bill Handel roasted the tax proposal, warning that wealthy billionaires will flee the state if the initiative is passed by voters in November.