The primary proponent of California's proposed billionaire tax has rejected claims that the measure is already prompting wealthy residents to leave the state, asserting that such warnings are "entirely fabricated."
Dave Regan, president of SEIU-United Healthcare Workers West (SEIU-UHW), stated there is "absolutely no evidence" of billionaires departing California due to the one-time tax proposal. He pushed back against critics, including Gov. Gavin Newsom and various business groups, suggesting that similar predictions have not materialized in other locations.
"All of the evidence, all of the research, all of the data that we have is that the very wealthy make this argument every single time," Regan said, referencing the millionaire tax in Massachusetts, where he argued predictions of wealthy residents relocating to New Hampshire and other states did not come true.
Regan's comments come as reports indicate at least six California billionaires have reportedly changed their residency before the Jan. 1 cutoff date, which is intended to exempt individuals from the proposed tax if enacted. Among those cited are Google co-founder Larry Page, who has acquired property in Florida; Palantir co-founder Peter Thiel, who has strengthened his ties to Florida and votes there; and venture capitalist David Sacks, who moved to Austin, Texas.
Other notable figures reportedly linked to moves include Google co-founder Sergey Brin, who has been associated with real estate in South Florida and the Lake Tahoe region of Nevada. SpaceX investor Steve Jurvetson and AI executive Naveen Rao have also reportedly relocated to the Nevada side of Lake Tahoe.
Additionally, Amazon founder Jeff Bezos and Oracle founder Larry Ellison have established residences outside California in recent years. Meg Whitman, former CEO of Hewlett-Packard and eBay, recently sold her Northern California ranch amidst the ongoing debate.
Tax adviser David Lesperance indicated he assisted four billionaire clients in terminating their California residency before the Jan. 1 deadline. Wealth managers have also cautioned that an additional 15 to 20 billionaire families might leave if the measure is approved by voters.
Regan countered these warnings, explaining that the proposed tax is a one-time levy based on residency status as of Jan. 1, 2026. "So there is no incentive for billionaires to leave. Their status as a legal resident is already ingrained," he stated.
The California Billionaire Tax Act qualified for the November ballot after proponents gathered sufficient signatures. The measure aims to impose a one-time 5% tax on California residents with a net worth exceeding $1 billion as of Jan. 1, 2026. Supporters estimate it could generate approximately $100 billion, with 90% of the revenue allocated to healthcare programs like Medi-Cal and the remaining 10% directed toward education and food assistance.
Regan asserted the tax is necessary to counteract anticipated federal healthcare funding cuts. "This is a one-time emergency tax to address the collapse of our healthcare system in California and the loss of healthcare coverage for three-and-a-half million people," he said.
Gov. Newsom has announced his opposition to the measure, arguing that a state-level wealth tax could deter investment and ultimately result in a net loss for the state. Supporters had previously offered to reduce the tax rate to 2% during negotiations with Newsom, but he rejected the compromise, deeming the state-level proposal fundamentally flawed.
The ballot will feature competing measures backed by opponents of the billionaire tax. These initiatives, supported by individuals like Brin and former Google CEO Eric Schmidt, aim to undermine the proposed tax. One competing measure seeks to implement expanded audits for programs funded by new special taxes, which critics suggest could complicate the billionaire tax's implementation. Other proposals aim to prohibit retroactive taxes on personal financial assets and restrict the ability of lawmakers to exempt new tax revenue from California's constitutional spending limits, directly targeting the billionaire tax's retroactive trigger and funding structure.