The Battle to Pass a Billionaire Tax
Most Democratic voters say that they favor a wealth tax, but a California ballot initiative has plenty of liberal opponents.
California’s once tech-friendly reputation has transformed into a place plagued by high-stress work culture and unaffordable housing. Notably, its tech titans, once liberal, attended Donald Trump’s second inauguration. Elon Musk, the electric vehicle pioneer, was involved in government sabotage early 2025 and topped the charts as the first trillionaire.
Mark Zuckerberg, of Meta, settled a lawsuit with 47 states and the federal government around $17 billion, concerning the impact of his social networks on young people. Across the nation, politicians from both major parties oppose data centers supporting the AI surge, fueling anxiety about Big Tech. Recently, Bruce Cain, a Stanford political scientist, expressed Californians' disappointment, noting that their naïve belief in technology’s goodness has led to disillusionment.
On November 3rd, Californians will decide on Proposition 40, a ballot initiative that seeks to impose a one-time 5% wealth tax on billionaires, primarily targeting Silicon Valley executives. If successful, this would mark the first U.S. government to tax the assets of the ultra-wealthy as a class, potentially generating $100 billion for the state.
However, the race is far from over, as several tech billionaires have already left the state, warning their peers to follow. This issue will likely dominate the 2028 Presidential race, with economists supporting the measure, while few Democrats and no Republicans have endorsed it.
Written by urgent.news from The New Yorker's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
