The ultrarich are leaving California as a result of a proposed billionaire tax. "Eat the rich" may be a popular rallying cry, but it's not viable public policy.
The ballot measure, which was submitted in November 2025 by Suzanne Jimenez, a health care union representative, would impose a one-time 5 percent tax on billionaires who were California residents as of the measure's tax "obligation date" of January 1. Even though the initiative has not yet passed, venture capitalist Chamath Palihapitiya estimates that $1 trillion of billionaire wealth "has left California" in advance of the measure's tax obligation date. California billionaires have also taken "income tax revenue, sales tax revenue, real estate tax revenue and all their staffs (and their salaries and income taxes) with them," says Palihapitiya.
