California Billionaire Tax Proposal Cited as Driver for Wealth Relocation

Proposition 40, a measure on the November ballot, proposes a one-time 5% tax directed at California residents with a net worth of $1 billion or more. This tax would be used to fund state health care and education programs. The measure targets any billionaire who was a resident of California as of January 1, 2026, regardless of whether they have since left the state.

The proposal introduces significant tax risk for high-net-worth residents of California. This financial pressure is cited as a reason for some billionaires, including Peter Thiel and Larry Ellison, to relocate and change their tax base.

Forbes has tracked the net worth of billionaires like Elon Musk, using Larry Ellison and Larry Page as benchmarks, while Oxfam reports have analyzed Musk's wealth growth.