The post California 5% Wealth Tax On Billionaires Could Pass This Time appeared on BitcoinEthereumNews.com. A rustic sign that says “Taxing California.” getty California has long been the land of high taxes. It’s top 13.3% income tax does not distinguish between ordinary income and capital gain. The top 13.3% tax can grow to 14.4% in some cases. There are audit and administration concerns too. California’s Franchise Board is notoriously tough, many say tougher than the IRS. So far, California has not had a wealth tax, although it has been proposed a few times. The latest proposal is targeted, and it may stand a better chance of passing than the wealth tax proposals of the past. Wealth Tax on Top of Income Tax A proposed ballot measure known for the 2026 Billionaire Tax Act would impose a one-time 5% tax on billionaires living in the Golden State, said to be about 200 people. Supporters say that this measure could raise about $100 billion to help fill funding gaps in health care and education. Proponents say that the tax is needed to offset massive cuts in federal spending on Medicaid and food aid recently signed into law by President Trump. As proposed, the tax would apply to the net worth of California billionaires in the 2026 tax year. Administering a Wealth Tax Notably, real estate holdings would be exempt. However, most other assets — from private company shares to investment portfolios — would be subject to the 5% levy. The tax could be paid over five years. A small group of billionaires who might have to pay a mere 5% seem unlikely to generate much sympathy from most California taxpayers, or sympathy nationally for that matter. But as with the prior wealth tax proposals, some of the objections are likely to focus on floodgates concerns. There are administrative worries too. Wealth isn’t about income, but about assets.… The post California 5% Wealth Tax On Billionaires Could Pass This Time appeared on BitcoinEthereumNews.com. A rustic sign that says “Taxing California.” getty California has long been the land of high taxes. It’s top 13.3% income tax does not distinguish between ordinary income and capital gain. The top 13.3% tax can grow to 14.4% in some cases. There are audit and administration concerns too. California’s Franchise Board is notoriously tough, many say tougher than the IRS. So far, California has not had a wealth tax, although it has been proposed a few times. The latest proposal is targeted, and it may stand a better chance of passing than the wealth tax proposals of the past. Wealth Tax on Top of Income Tax A proposed ballot measure known for the 2026 Billionaire Tax Act would impose a one-time 5% tax on billionaires living in the Golden State, said to be about 200 people. Supporters say that this measure could raise about $100 billion to help fill funding gaps in health care and education. Proponents say that the tax is needed to offset massive cuts in federal spending on Medicaid and food aid recently signed into law by President Trump. As proposed, the tax would apply to the net worth of California billionaires in the 2026 tax year. Administering a Wealth Tax Notably, real estate holdings would be exempt. However, most other assets — from private company shares to investment portfolios — would be subject to the 5% levy. The tax could be paid over five years. A small group of billionaires who might have to pay a mere 5% seem unlikely to generate much sympathy from most California taxpayers, or sympathy nationally for that matter. But as with the prior wealth tax proposals, some of the objections are likely to focus on floodgates concerns. There are administrative worries too. Wealth isn’t about income, but about assets.…

California 5% Wealth Tax On Billionaires Could Pass This Time

A rustic sign that says “Taxing California.”

getty

California has long been the land of high taxes. It’s top 13.3% income tax does not distinguish between ordinary income and capital gain. The top 13.3% tax can grow to 14.4% in some cases. There are audit and administration concerns too. California’s Franchise Board is notoriously tough, many say tougher than the IRS. So far, California has not had a wealth tax, although it has been proposed a few times. The latest proposal is targeted, and it may stand a better chance of passing than the wealth tax proposals of the past.

Wealth Tax on Top of Income Tax

A proposed ballot measure known for the 2026 Billionaire Tax Act would impose a one-time 5% tax on billionaires living in the Golden State, said to be about 200 people. Supporters say that this measure could raise about $100 billion to help fill funding gaps in health care and education. Proponents say that the tax is needed to offset massive cuts in federal spending on Medicaid and food aid recently signed into law by President Trump. As proposed, the tax would apply to the net worth of California billionaires in the 2026 tax year.

Administering a Wealth Tax

Notably, real estate holdings would be exempt. However, most other assets — from private company shares to investment portfolios — would be subject to the 5% levy. The tax could be paid over five years. A small group of billionaires who might have to pay a mere 5% seem unlikely to generate much sympathy from most California taxpayers, or sympathy nationally for that matter. But as with the prior wealth tax proposals, some of the objections are likely to focus on floodgates concerns.

There are administrative worries too. Wealth isn’t about income, but about assets. How do you determine the value of everything you own? For example, what about stock options in private companies? You can bet that you might say one figure, and the notoriously aggressive California Franchise Tax Board might say something quite different.

California is often a leader, and will a wealth tax set a precedent for other states? There is also the exit factor. Already, California has had a wave of taxpayers voting with their feet, leaving California over taxes in favor of no tax or lower tax states. The loss in numbers and dollars is palpable, and some say that the risk of pushing out some of California’s richest residents is a mistake. Taxes aren’t the only reason people move, of course. When Elon Musk left California he cited high taxes and regulation. Now SpaceX too has relocated.

A healthy 870,000 signatures are needed before Californians the wealth tax can hit the California ballot enabling every California voter to give the new tax a thumbs up or thumbs down. This is not the first time a wealth tax has been proposed in the golden state. For example, in 2020, California legislators proposed a 0.4% wealth tax, and a 16.8% income tax rate. Neither was passed, but way the 0.4% wealth tax would have worked is interesting in light of the new ballot proposition. The proposed 0.4% tax rate would have applied to a person’s net worth above $30 million. At the time, proponents said that was about 30,400 Californians. The latest California Billionaire Tax targets only a fraction of this number, with a putatively one-time 5% rate.

Source: https://www.forbes.com/sites/robertwood/2025/11/24/california-5-wealth-tax-on-billionaires-could-pass-this-time/

Market Opportunity
Sign Logo
Sign Price(SIGN)
$0.0268
$0.0268$0.0268
-1.86%
USD
Sign (SIGN) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

CEO Sandeep Nailwal Shared Highlights About RWA on Polygon

CEO Sandeep Nailwal Shared Highlights About RWA on Polygon

The post CEO Sandeep Nailwal Shared Highlights About RWA on Polygon appeared on BitcoinEthereumNews.com. Polygon CEO Sandeep Nailwal highlighted Polygon’s lead in global bonds, Spiko US T-Bill, and Spiko Euro T-Bill. Polygon published an X post to share that its roadmap to GigaGas was still scaling. Sentiments around POL price were last seen to be bearish. Polygon CEO Sandeep Nailwal shared key pointers from the Dune and RWA.xyz report. These pertain to highlights about RWA on Polygon. Simultaneously, Polygon underlined its roadmap towards GigaGas. Sentiments around POL price were last seen fumbling under bearish emotions. Polygon CEO Sandeep Nailwal on Polygon RWA CEO Sandeep Nailwal highlighted three key points from the Dune and RWA.xyz report. The Chief Executive of Polygon maintained that Polygon PoS was hosting RWA TVL worth $1.13 billion across 269 assets plus 2,900 holders. Nailwal confirmed from the report that RWA was happening on Polygon. The Dune and https://t.co/W6WSFlHoQF report on RWA is out and it shows that RWA is happening on Polygon. Here are a few highlights: – Leading in Global Bonds: Polygon holds 62% share of tokenized global bonds (driven by Spiko’s euro MMF and Cashlink euro issues) – Spiko U.S.… — Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) September 17, 2025 The X post published by Polygon CEO Sandeep Nailwal underlined that the ecosystem was leading in global bonds by holding a 62% share of tokenized global bonds. He further highlighted that Polygon was leading with Spiko US T-Bill at approximately 29% share of TVL along with Ethereum, adding that the ecosystem had more than 50% share in the number of holders. Finally, Sandeep highlighted from the report that there was a strong adoption for Spiko Euro T-Bill with 38% share of TVL. He added that 68% of returns were on Polygon across all the chains. Polygon Roadmap to GigaGas In a different update from Polygon, the community…
Share
BitcoinEthereumNews2025/09/18 01:10
XRP Price Targets $1.65 Next, But BTC Correction Could Push It Down First

XRP Price Targets $1.65 Next, But BTC Correction Could Push It Down First

XRP targets $1.65 resistance, but Bitcoin’s incomplete wave pattern may trigger pullback to $1.30 first. Technical indicators show mixed signals with RSI at 36
Share
LiveBitcoinNews2026/02/09 01:45
Moonshot MAGAX vs Shiba Inu: The AI-Powered Meme-to-Earn Revolution Challenging a Meme Coin Giant

Moonshot MAGAX vs Shiba Inu: The AI-Powered Meme-to-Earn Revolution Challenging a Meme Coin Giant

Discover how Moonshot MAGAX’s AI-powered meme-to-earn platform outpaces Shiba Inu with innovative tokenomics and growth potential in 2025.
Share
Blockchainreporter2025/09/18 03:15