The Facts

More California Democrats are lining up against the proposed billionaire tax. State Sen. Scott Wiener said he doesn't support the measure, telling Joe Fitzgerald Rodriguez, Gabe Greschler, and Han Li at The Standard that a one-time wealth tax is not "the best approach."

Gov. Gavin Newsom and San Jose Mayor Matt Mahan have also come out against it.

The initiative would impose a one-time seizure of up to 5% on covered assets over $1 billion, including businesses, securities, art, collectibles, and intellectual property, while exempting that revenue from the state's normal rules on school funding, reserves, and the spending limit.

The Context

California already depends on a volatile tax base. The Legislative Analyst's Office says capital gains are extremely volatile and are a major reason state revenues swing so sharply from boom to bust.

Critics argue this measure could make that problem worse by encouraging capital flight. The Jan. 1, 2026 residency cutoff has already become part of the political war: Sergey Brin moved to Nevada and later gave $45 million to a PAC opposing the measure, according to Dara Kerr at The Guardian. The anti-tax campaign now includes multiple billionaire-backed committees and a separate ballot measure aimed at blocking retroactive taxes.

The GrowSF Take

GrowSF supports broad-based taxes where everyone pays their fair share. We do not support punitive, populist asset seizures aimed at a tiny number of people and marketed as an easy fix for ongoing spending.

Even if this tax is defeated, it's already done damage: recurring tax revenue has been lost by wealthy people leaving the state and steering their investments elsewhere.