World news and discussion on TalkFuse.
I’m a wealthy Californian. The billionaire tax is a win for everyone | George Zimmer
California voters will decide on Proposition 40, a proposed one-time 5% tax on the net worth of about 250 billionaires. George Zimmer, a wealthy Californian who supports the measure, argues it could reduce inequality and help fund healthcare without causing a mass departure of wealthy residents or undermining innovation.
Organisers estimate the tax would raise about $100bn, most of it for healthcare following federal cuts. The article says only six billionaires had moved out by the 1 January 2026 deadline to avoid the tax; it also cites studies showing no mass flight after other states raised taxes, and reports California attracted at least 80% of US venture capital funding in 2026 so far. Billionaires’ wealth in the state grew by an average 15% annually from 2019 to 2025, while state income taxes amounted to 0.26% of that wealth.
In short
- California voters are weighing a one-time 5% billionaire tax.
- Organisers estimate it could raise about $100bn, mostly for healthcare.
- Zimmer says fears of billionaire flight and lost innovation are overstated.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that a one-off tax on a small number of exceptionally large fortunes could raise substantial funds for healthcare and help address inequality, while asking little relative to the wealth involved. They point to limited reported departures and continued investment as evidence that the measure need not drive wealthy residents away or weaken California’s innovation economy.
The case against
Opponents can argue that taxing accumulated wealth, especially at a high one-off rate, may be unfair or difficult to administer and could prompt some wealthy residents to leave before the deadline. They may also worry that taxing assets rather than income could discourage investment, reduce future tax receipts, or set a precedent that creates uncertainty for businesses and taxpayers.
Explained simply
Proposition 40 is a proposed one-off tax on the wealth of California residents worth at least a billion dollars. It is based on net worth, which includes assets such as shares and property, rather than annual income.
California voters will decide whether to approve it. Supporters say the money could help pay for healthcare, while opponents have raised concerns about wealthy residents leaving and the effect on investment and innovation.
The debate comes as California faces pressure on public services and has a large share of the United States’ technology and investment industries. It also raises broader questions about how much the wealthiest residents should contribute and how governments can fund services.
Americas Business Elections Politics World