California certifies November billionaire tax amid tech pushback
California has certified a one-time 5% wealth tax on billionaires for the November ballot, setting up an unprecedented spending war with Silicon Valley that could reshape transatlantic tax policy debates.
California’s secretary of state has officially certified a ballot measure for November that would impose a one-time 5% tax on residents with a net worth exceeding $1 billion. The certification came late on Thursday after Governor Gavin Newsom failed to strike a backroom deal to pull the initiative before the deadline.
For European policymakers monitoring global wealth taxation, the California vote represents a critical test case. Bernie Sanders has championed the measure, arguing a state-level victory could pave the way for a federal tax and fundamentally alter the playing field for European capitals weighing similar levies. "Never before have so few people had so much wealth and so much power," Sanders said during a February speech in Los Angeles.
The proposal is backed by the Service Employees International Union-United Healthcare Workers West to fund strained healthcare and education programs. Chief of staff Suzanne Jimenez framed it as a direct response to federal healthcare cuts under Donald Trump’s One Big Beautiful Bill Act. "Asking those who have benefited most from the economy to contribute more – particularly to stabilize healthcare systems under direct threat – is a reasonable step," Jimenez said.
However, the backlash from California's tech sector—a major driver of transatlantic investment—has been swift and massive. Google co-founder Sergey Brin has spent at least $82 million to oppose the tax, while crypto billionaire Chris Larsen has contributed at least $13.2 million. Dozens of other tech figures, including Peter Thiel, Eric Schmidt, Tony Xu and Patrick Collison, have poured millions into super PACs to battle the initiative.
Newsom fiercely opposes the measure, warning it will trigger a "race to the bottom" by pushing billionaires out of the state. Even traditional allies of the labour movement, including the California Teachers Association and Planned Parenthood Affiliates of California, argue the one-time lump sum lacks a sustainable funding path.
Tech interests have now secured two counter-measures on the same November ballot. One would prohibit new taxes on individually owned assets and bar retroactive levies, while another would ban new state taxes enacted after 1 January 2026. With approximately 200 California billionaires facing a retroactive tax to the start of 2026, voters face a confusing choice that will dictate the state's economic climate for years to come.
