A California labor union has launched a campaign to impose a one-time “billionaire tax” on the state’s wealthiest residents, targeting Hollywood figures, tech executives, and other ultra-elite Californians. The proposal, developed by Service Employees International Union–United Healthcare Workers West (SEIU-UHW), would impose a five percent tax on all net worth above $1 billion. It covers assets such as stocks, real estate, artwork, and intellectual property rights, making it the first measure of its kind anywhere in the world.
According to the Daily Mail, the union must collect roughly 875,000 voter signatures for the measure to reach the statewide ballot. Under the proposal, a billionaire with a net worth of $10 billion would owe $500 million, payable over five years. Supporters estimate the plan could generate more than $100 billion for health care and education programs across California.
California has an estimated 255 billionaires, more than any other US state. Entertainment figures who would be affected include Kim Kardashian, whose net worth is estimated at $1.7 billion; Rihanna, who surpassed the billion-dollar threshold through Fenty Beauty; Selena Gomez, reported to be worth up to $1.4 billion; and Jay-Z and Beyoncé, who together hold more than $3.5 billion in assets. Others include Oprah Winfrey, estimated at $3.5 billion, and Jerry Seinfeld, reportedly worth $1.1 billion.
These sums are overshadowed by the wealth of California’s top technology leaders. Mark Zuckerberg, whose estimated net worth is $251 billion, could face a tax bill approaching $12 billion under the proposal. Larry Page and Sergey Brin, co-founders of Google, are estimated at $179 billion and $166 billion, respectively, placing much of the potential tax burden on Silicon Valley.
Backlash from the tech sector has been immediate. Entrepreneurs and podcast hosts Chamath Palihapitiya and David Sacks criticized the plan on their All-In podcast, warning it could accelerate the departure of wealthy business leaders from California. Elon Musk and Larry Ellison have already relocated to Texas, moving their business headquarters and primary residences. Palihapitiya suggested the union was floating the tax as a “trial balloon” to test voter support for sharper distinctions between ordinary Californians and the ultra-rich. Sacks, who served as a White House AI and crypto adviser under President Donald Trump, said the proposal felt like an attempt by Democrats to push him out of the state. “I don’t want to. I really am resisting,” he said.
California Governor Gavin Newsom has declined to endorse the measure.
Some critics also note that many startup founders hold equity with inflated valuations that do not represent liquid wealth. They warn that individuals who appear to be billionaires on paper could face large tax bills they cannot pay.
