California’s 2026 Billionaire Tax Plan Sparks Exodus Fears Among Tech Elite
California's proposed Billionaire Tax Act is sending shockwaves through the tech community. The plan WOULD impose a 5% levy on unrealized gains for individuals with net worth exceeding $1 billion—a move that could affect roughly 200 residents in the state. Supporters argue it’s necessary to fund healthcare and education amid federal cuts, but critics warn of capital flight and economic fallout.
The retroactive nature of the tax and its targeting of paper wealth have drawn sharp rebukes from Silicon Valley. Founders and investors fear the policy could destabilize long-term holdings, including crypto assets. With California contributing 14% of U.S. GDP, the debate underscores growing tensions between wealth redistribution and innovation incentives.
