California has the most billionaires of any U.S. state—255 of 989 in America—the largest billionaire count in the world. High-profile billionaires like Larry Page, Sergey Brin, and Mark Zuckerberg reside in the state. Zuckerberg received a tax bill of about 10 billion and almost left the state, like a few other billionaires. In return, Meta offered him non-voting Class C shares to offset the tax bill.
What is causing this chaos among the mega-rich? It is Proposition 40, the billionaire wealth tax, which is heavily debated in some parts of the world, though not yet implemented. It calls for a 5% wealth tax on individuals with net worth over 1 billion. This fund will be used for healthcare and public education. The mission is to raise $100 billion towards improved healthcare.
Several billionaires have moved out of the state, and few have invested millions in opposition to this proposition. 48% of Californians are in favor of this objective. This ballot is set to take place on November 3rd and has already gained the support of major economists.
On the other hand, Google co-founder Sergey Brin has already paid $100 million to defeat this campaign for a billionaire tax. There are other concerns that this measure could drive multiple billionaires out of California.
Washington is also eyeing a millionaires’ tax—a 9.9% tax on those earning $1 million a year. However, the billionaire tax is not easy to execute—Proposition 40 has become one of the most expensive campaigns ever. More than $351 million has been raised for it. But the reality is a stark contrast—$316.7 million has been raised against it, while only $34.3 million has been raised in its favor.
There’s another plot twist—there are Propositions 41 and 42 that are designed by billionaires to undermine Proposition 40. These “deceiving” propositions also need votes against them to ensure the success of Proposition 40.
