The billionaire boys fight the wealth tax
Across America, billionaires and their minions are working to defeat a proposed ballot measure in California that would marginally tax the assets of the ultra-rich. The initiative would use the proceeds to ensure that millions of low-income residents can remain on the state’s Medicaid program.
The 2026 Billionaire Tax Act, championed by United Healthcare Workers West (UHW), a branch of the Service Employees International Union, would impose a one-time 5% tax on the assets of California residents with a net worth over $1.1 billion. It would apply to billionaires residing in the state as of January 1, 2026.
The proposed tax would impact only the 200 wealthiest Californians and is structured to have minimal impact on their lives. The policy would allow payments to be divided into multiple installments over five years, beginning in 2027, and would exempt real estate holdings or personal property worth up to $5 million.
In return, an estimated 3.4 million Californians would retain health coverage under Medi-Cal, California’s Medicaid program. The state is facing $30 billion in federal cuts that will begin to take effect in 2026. Those cuts were included in the so-called “One Big Beautiful Bill Act,” Trump’s signature legislative initiative. The same legislation also provides trillions of dollars in tax relief for the richest 10% of Americans. Those tax cuts are partially offset by slashing spending for Medicaid.
But for many billionaires and aspiring billionaires, the prospect of losing a small portion of their wealth is too much to bear — even if it means preserving essential health coverage for millions of fellow Californians.
Class solidarity for the ultra-rich
Fears of a billionaire tax have triggered a heightened sense of class solidarity among the Silicon Valley elites. The New York Times reported recently that opponents of the proposed tax expect to spend up to $75 million to defeat the initiative. Right-wing megadonor Peter Thiel, a co-founder of Palantir who has an estimated net worth of $27.5 billion, donated $3 million last month to a California pro-“business” lobbying group fighting the proposed tax. Thiel and Google cofounders Sergey Brin and Larry Page moved to relocate some of their businesses out of the state late last year, although it’s unclear whether any of their residences have officially been changed.
It’s also not certain whether those legal maneuvers would convince California’s famously thorough tax and residency monitoring. “A billionaire temporarily relocating to their fourth or fifth mansion in another state does not officially mean they avoid paying a fair share to help keep emergency rooms and hospitals open,” said UHW chief of staff Suzanne Jimenez.
Still, Alex Spiro, a lawyer who has represented numerous billionaires, including Elon Musk, has called on California Gov. Gavin Newsom to kill the proposal. According to Spiro, his “clients have made clear they will permanently relocate if subjected to this tax.”
That line of argument appears to have convinced Newsom, a Democrat vying for the presidency in 2028, to “adamantly” oppose the initiative. “A one-time wealth tax at a state level that almost exclusively goes to solve one problem — health care — and not solving for larger issues… is not something I support,” the governor said last week during an appearance at the World Economic Forum’s annual meeting in Davos, Switzerland. Newsom, himself a millionaire, has not proposed an alternative way to replace the funding in California’s Medicaid program.
Meanwhile, in a groupchat on the encrypted messaging app Signal, a trio of billionaires — Trump administration AI czar David Sacks, Anduril cofounder Palmer Luckey, and Ripple cofounder Chris Larsen — have colluded to torpedo the proposed tax, according to the Wall Street Journal. As of now, Sacks appears to be the only California billionaire to have moved his residence out of the state ahead of the January 1 deadline. He claims he moved to Texas in December, around the same time as the announcement of the UHW’s initiative.
Media outlets owned by oligarchs have also blasted the proposed billionaire tax. “The [UHW’s] initiative is a warning to anyone with wealth or stock options to flee,” wrote the editorial board of the Murdoch family-owned Wall Street Journal.
The editorial board of the Washington Post, which is owned by centibillionaire Jeff Bezos, warned that “California will miss billionaires when they’re gone.” The editorial board, which has been remade over the past year to reflect Bezos’ ideological preference, claimed that slightly less wealthy people would be next. “Nor will bloodthirsty unions stop with billionaires,” the board argued. “After the most affluent people put down roots in states with worse weather but better tax climates, these activists will target the next tier of ‘rich’ people who don’t have as much flexibility to flee.”
What makes the UHW’s proposal unique
The UHW, which represents more than 120,000 workers in California, remains a long way from turning its proposal into the first-ever billionaire wealth tax. The initiative needs to collect nearly 900,000 signatures to qualify for the November ballot. If it is approved by voters, Newsom could lead an effort to have it overturned by the California Supreme Court. Those impacted by the tax could also file lawsuits, potentially tying it up in court for years.
The initiative, apart from its focus on billionaires, is unique in that it would make illiquid assets taxable, including private equity stakes, hedge funds, artwork, and other vehicles used to store wealth. Shares in public companies would also be taxed based on their market value as of December 31, 2026.
Typically, new taxes on the wealthy focus on their income. Billionaires avoid most taxes by earning very little income and instead borrowing against their assets to support their lifestyle. This strategy is known as “buy, borrow, die.”
Along with funding for Medi-Cal, a small portion of the proposal’s revenue would be allocated to food assistance programs and public education.
Hitting billionaire douch bags in the pocket book doesnt work - they have too much money. People have a hard time comprehending what billions of dollars looks like. It's more money than anyone can tax to make a dent in anything. The billionaire barons fear for their security, Disturb that world and then you'll see results. Protest where they live. Dont fly their planes or boats or take out their trash. They are useless.
Even with extreme advantages these predators insist on revealing that actually they are pu$$ies. Filthy kkkunts in fact.
What additional cushions are needed to make people who take money out of circulation finally feel comfortable enough where they can be entrusted not to harm those who actually contribute to the wellbeing of broader society? Does greed automatically translate to narcissism?