The tax would apply to a wide range of assets, including stocks, real estate, artwork, and even intellectual property rights, making it the first measure of its kind anywhere in the world.
A California labor union has launched a campaign to impose a one-time “billionaire tax” on the state’s richest residents, targeting Hollywood moguls, tech titans, and other members of California’s ultra-elite class.
According to the Daily Mail, the proposal, developed by Service Employees International Union–United Healthcare Workers West (SEIU-UHW), calls for a five percent tax on all net worth above $1 billion. The tax would apply to a wide range of assets, including stocks, real estate, artwork, and even intellectual property rights, making it the first measure of its kind anywhere in the world.
To qualify for the statewide ballot, the union must collect roughly 875,000 voter signatures. Under the plan, a billionaire with a net worth of $10 billion would owe $500 million, payable over five years. Backers of the proposal estimate it could generate more than $100 billion in revenue for health care and education initiatives across the state.
California is home to an estimated 255 billionaires, more than any other US state, and many of them are prominent figures in entertainment. Kim Kardashian is estimated to be worth $1.7 billion, while Rihanna’s success with Fenty Beauty has pushed her net worth above the billion-dollar mark as well. Selena Gomez is reported to be worth as much as $1.4 billion, and Jay-Z and Beyoncé together hold more than $3.5 billion in assets. Other high-profile names that would be affected by the proposal include Oprah Winfrey, whose net worth is estimated at $3.5 billion, and comedian Jerry Seinfeld, reportedly worth $1.1 billion.
These fortunes are dwarfed by the wealth of California’s top tech executives. Mark Zuckerberg’s estimated net worth of $251 billion makes him one of the richest people in the world and means he could face a tax bill approaching $12 billion under the proposal. Larry Page and Sergey Brin, co-founders of Google, are estimated to be worth roughly $179 billion and $166 billion, respectively. Silicon Valley would bear the brunt of the proposed tax.
The backlash from the tech world has been swift. Entrepreneurs and podcast hosts Chamath Palihapitiya and David Sacks criticized the proposal on their “All-In” podcast, warning that it could accelerate the exodus of wealthy individuals from California. Both Elon Musk and Larry Ellison have already relocated to Texas in recent years, moving their business headquarters and establishing residences out of state. Palihapitiya suggested the union was using the tax as a “trial balloon” to gauge whether California voters would support drawing a sharper line between themselves and the ultra-rich. Sacks, who was appointed by President Donald Trump as a White House AI and crypto adviser, said the proposal felt like a deliberate attempt by Democrats to push him out of the state. “I don’t want to. I really am resisting,” he insisted.
California Governor Gavin Newsom has declined to endorse the measure.
Some critics also noted that startup founders in tech often hold equity with highly inflated valuations that do not translate into liquid wealth. As a result, individuals who appear to be billionaires on paper could be hit with enormous tax bills they are unable to pay.
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