Billionaires Split Over California Wealth Tax as Huang, Worth $200 Billion, Backs Paying More
Updated
Updated · CNN · May 15
Billionaires Split Over California Wealth Tax as Huang, Worth $200 Billion, Backs Paying More
3 articles · Updated · CNN · May 15
$200 billion Nvidia CEO Jensen Huang broke with several peers by shrugging off California’s proposed wealth tax and calling taxes a way to give back.
Millions are already being spent against such plans: Sergey Brin and Peter Thiel are fighting California’s proposal, while Ken Griffin blasted New York Mayor Zohran Mamdani’s pied-a-terre tax pitch.
The divide tracks politics and generation as older figures like Warren Buffett and Bill Gates have backed higher taxes on the rich, while many younger libertarian-leaning tech billionaires distrust government spending.
3.4% was the federal income tax rate ProPublica found for the top 25 billionaires from 2014 to 2018, underscoring how wealth growth often escapes taxes that fall more heavily on salaried earners.
States including Washington, Massachusetts and California are trying to close that gap, but wealth taxes are hard to administer and can drive people or assets to lower-tax jurisdictions, making federal action more effective.
As billionaires exit high-tax states, can America's wealth tax experiment avoid the failures seen across Europe?
Will taxing the super-rich solve inequality or drive away the capital that fuels critical national innovation?
California’s $100 Billion Wealth Tax Showdown: The 2026 Ballot Battle Over a One-Time 5% Levy on Billionaires
Overview
California is heading into a major ballot battle in November 2026 over a proposed one-time 5% tax on its wealthiest residents. The measure, which targets about 200 to 250 billionaires, has already secured enough signatures to appear before voters. If passed, it could generate around $100 billion in revenue. The proposal has sparked immediate and strong reactions, especially among billionaires, leading to the formation of a well-funded opposition group called Building a Better California, which has raised $93 million from tech leaders and business executives. This debate highlights deep divisions over wealth, taxation, and California’s future.