A growing number of billionaires in California are considering relocating their residency due to a controversial proposed law that would impose an extraordinary wealth tax on large fortunes.
A significant trend has emerged in California, where an increasing number of billionaires are contemplating moving their residences out of the state due to a proposed law that would impose a wealth tax. Dubbed the Billionaire Tax Law of 2026, this legislation aims to establish a one-time 5% tax on individual fortunes exceeding $1 billion. If passed in the upcoming November elections, the law would apply retroactively from the beginning of the year, raising concerns among the state's wealthy residents.
The urgency surrounding this issue has intensified following the recent news that renowned filmmaker Steven Spielberg, a long-time California resident, has established residency in Manhattan, New York. While Spielberg’s representative has emphasized that this decision was made for family reasons, particularly to be closer to his children and grandchildren, it still highlights the growing discomfort among billionaires regarding potential financial liabilities driven by the proposed tax law.
California Governor Gavin Newsom has criticized the proposed billionaires' tax, warning that it could trigger an outflow of wealthy taxpayers from the state. With the looming threat of significant taxation, the reactions from affluent residents may influence the political landscape and economic stability within California, as lawmakers and constituents grapple with the implications of such a drastic fiscal measure.
