In a vibrant display of dissent, participants donned costumes, including an inflatable squid, at the People Over Billionaires protest in Alta Plaza, San Francisco, on November 15, 2025. The event coincided with rising discussions about a proposed billionaire tax in California, which has become a point of contention among state leaders and technology experts.
American venture capitalist Chamath Palihapitiya recently stated on a podcast that he believes the existence of billionaires in California may be short-lived. Starting in January, a coalition led by a California health care workers’ union plans to start gathering signatures for a one-time tax aimed at billionaires. The proposed tax would levy a 5% charge on assets of Californians worth over $1 billion, impacting a wide array of holdings such as stocks, artwork, and intellectual properties.
Recent data suggests that California is home to approximately 255 billionaires, making up a significant portion of the national total. For instance, tech mogul Mark Zuckerberg, valued at over $200 billion, would face a tax exceeding $10 billion if this policy materializes. The union backing the initiative insists that the generated revenue will be used to bolster health care, public education, and food assistance programs across the state.
For the proposal to reach the voting ballot in November, advocates need to collect over 875,000 signatures. While some, like UC Berkeley economist Emmanuel Saez, view the tax as a potentially transformative model for wealth redistribution worldwide, others raise concerns about California’s economic future.
Tax adviser David Lesperance believes wealthy individuals are already mobilizing to safeguard their assets amid these developments, hinting that some may relocate to avoid the tax. He noted that tech leaders such as Elon Musk and Tim Cook have the flexibility to operate from virtually anywhere. Echoing this sentiment, Garry Tan, a prominent Bay Area entrepreneur, warned that the tax could trigger an exodus of businesses from California, stressing the importance of retaining innovation and economic growth within the state.
Governor Gavin Newsom has publicly expressed his opposition to the billionaire tax, reinforcing the contention surrounding this issue. Chamath Palihapitiya warned that even if the measure fails, the sentiment could drive billionaires away and markedly shift the state’s economic prospects, potentially costing California $100 to $200 billion over the next decade.
Experts like David Friedberg, co-founder of Ohalo Genetics, voiced concerns that such a policy might incite a “socialist spiral,” potentially leading to hostile measures like property seizures. They argue that the tax may alienate entrepreneurs and deter future investments, threatening California’s position as a leading hub for technology and innovation.
The stakes are high as discussions continue around the proposed billionaire tax, with significant implications for the state’s economy and its roster of high-net-worth individuals. The outcome of this initiative could reshape the landscape of California’s wealth distribution and ultimately impact the state’s attractiveness to entrepreneurs and investors.