US billionaires spend $400 million to end wealth tax California is preparing to impose a one-time fee of 5% of their wealth on billionaires. The Proposition 40 initiative was recently put to a referendum. The results of the vote are not yet known.
The commission is calculated based on the value of the assets as of December 31, 2026. It may include stocks, investments and intellectual property. Real estate and most retirement accounts are excluded. The authors of the initiative estimate that the state can pay more than 200 billion dollars for a total amount of up to 100 billion dollars. The money is planned to be spent mainly on health services, as well as education and food aid. Opponents of the initiative, including founders of technology companies and venture capital investors, fear capital flight and job losses. According to media reports, billionaires have spent more than $400 million on the campaign against the collection. Some have already moved their business and changed their residence to avoid the tax. The struggle went beyond the scope of the campaign: the opponents launched 2 alternative initiatives, which, if approved, could block the collection. Governor Gavin Newsom also opposed it, warning of the risk of losing tax revenue. At the same time, there is no unity among the billionaires themselves: Nvidia CEO Jensen Huang said he was quite happy with the proposed tax. Essentially, California decides whether it is possible to finance social spending through a one-time levy on the largest capital - and how much such a measure would cost the state itself.