California Billionaires Cut 5% Wealth Tax Base by 30% Ahead of Ballot Fight
Updated
Updated · The New York Times · Jul 5
California Billionaires Cut 5% Wealth Tax Base by 30% Ahead of Ballot Fight
3 articles · Updated · The New York Times · Jul 5
Summary
Several California billionaires, including Google co-founders Sergey Brin and Larry Page, left the state before the Dec. 31, 2025 residency cutoff tied to a proposed 5% wealth tax.
That exodus removed about 30% of the targeted billionaire wealth base, and an analysis of 212 billionaires estimates the tax would raise roughly $40 billion, far below supporters' $100 billion claim.
Critics argue the damage would extend beyond the levy itself because departing billionaires also take future income-tax streams with them, weakening a key part of California's tax base.
France's experience is cited as a warning: it scrapped its wealth tax in 2018 after an estimated 200 billion euros left over two decades and the policy produced a 7 billion-euro annual budget shortfall.