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Critics Warn CA ‘Billionaire Tax’ Could Tax All Residents

4/30/2026

Summary

Critics Warn

Critics say the California “Billionaire Tax” initiative would tax every resident, not just billionaires.
The initiative’s text, cited April 6, 2026, would let the levy become an “Everyone Tax” and be switched to a yearly charge without further voter approval.
Drafted by four university professors, some non-U.S. citizens (tweet April 29, 2026), the measure prompted critics on April 25, 2026 to warn it could drive billionaires and their jobs out of California.

Summary

**California Board Expands**

The proposal requires filers to list every personal and business asset and its value for the California Franchise Tax Board.
The board may independently appraise assets and verify each reported valuation.
Undervaluation could trigger a penalty of up to forty percent of the tax bill.
The measure lets the board subpoena financial records and lets Sacramento convert the statewide levy into a tax on everyone without a voter referendum.

History

Historical Context

On June 6 1978 California voters approved Proposition 13, capping property taxes at 1 % of 1976 values, limiting assessment growth to 2 % annually, and requiring a two-thirds legislative supermajority for new taxes. The measure slashed local property-tax revenue by about 60 % the following year, a precedent cited as a warning for today’s proposed Billionaire Tax.

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Critics Warn

Critics say the California “Billionaire Tax” initiative would tax every resident, not just billionaires.
The initiative’s text, cited April 6, 2026, would let the levy become an “Everyone Tax” and be switched to a yearly charge without further voter approval.
Drafted by four university professors, some non-U.S. citizens (tweet April 29, 2026), the measure prompted critics on April 25, 2026 to warn it could drive billionaires and their jobs out of California.

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