Copyright New York Post
California’s richest residents could be slapped with a one-time 5% tax on their net worth if a new law makes it onto the ballot next year. The measure – called the “2026 Billionaire Tax Act” – seeks to counter $30 billion in potential federal funding cuts to California’s Medicaid program. Cash from the new tax could also pay for the Golden State’s struggling public education system, according to supporters of the act, which include the Service Employees International Union (SEIU). If passed and signed off by Gov. Gavin Newsom, California’s tech bosses like Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang, could face huge tax bills. Five percent of Huang’s estimated net worth could see him paying a one-time bill of over $8 billion, for example. Zuck’s bill could be even higher, at around $12 billion or more. Liberal supporters argue that around 200 billionaires in California hold about $2 trillion in wealth, but the state’s other 19 million taxpayers pay a “much larger portion” of their true income — echoing policies of New York mayoral front-runner Zohran Mamdani. “If we do not do this, millions of people are going to lose health care, an untold number of people will go without treatment and there will be tragedy after tragedy,” Dave Regan, president of SEIU-United Healthcare Workers West, said in a statement, according to Newsweek. California’s Attorney General’s office received a request on Oct. 21 to allow supporters to begin collecting signatures to get it on the November 2026 ballot. The measure would need to garner more than 870,000 signatures by next spring to make the ballot, Realtor.com reported. The proposal also comes as the state continues to grapple with population losses to lower-tax states such as Florida and Texas. Between 2023 and 2024, more Americans left California than any other state, Newsweek reported, citing Census Bureau data. The SEIU did not immediately respond to The Post’s request for comment.
