Proposed billionaires’ tax in California rattles Silicon Valley, entangles Gov. Newsom
January 13, 2026
A proposal to tax the accumulated wealth of California billionaires has ignited a political uproar in Silicon Valley and across the state. A large health care union is attempting to place a proposal before voters in November that would impose a one-time 5% tax on the assets of billionaires. The money would be used to backfill federal funding cuts to health services for lower-income people that were signed by President Donald Trump last year. Such proposals are popular within Democratic constituencies. But there are fears that billionaires could flee the state and take their tax dollars with them. Democratic Gov. Gavin Newsom is trying to block the measure.