Story perspectives

Billionaires Push Back Against California's Proposed Wealth Tax

1/15/2026

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Summary

Story summary

California's proposed 5% tax on billionaires' net worth has prompted criticism from Governor Gavin Newsom.
Sergey Brin moved entities to Nevada.
Larry Ellison relocated business interests out of California.
Peter Thiel donated $3 million to oppose the tax.
The initiative requires nearly 900,000 signatures to appear on the November ballot, with supporters campaigning.

History

Historical Context

California's Proposition 15, proposed in 2020, sought to amend the 1978 Proposition 13 by taxing commercial properties based on current market value, potentially generating $6.5 billion to $11.5 billion for public services. The measure faced opposition from wealthy individuals like Larry Ellison and Sergey Brin, reflecting ongoing tensions over taxation and wealth distribution in the state, ultimately failing by a narrow margin of four percentage points.

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Story summary

California's proposed 5% tax on billionaires' net worth has prompted criticism from Governor Gavin Newsom.
Sergey Brin moved entities to Nevada.
Larry Ellison relocated business interests out of California.
Peter Thiel donated $3 million to oppose the tax.
The initiative requires nearly 900,000 signatures to appear on the November ballot, with supporters campaigning.

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