Californians Wary of Billionaire Tax's Impact on Businesses

Poll shows majority fear tax will drive companies out of state

Mar. 12, 2026 at 12:57am

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A new poll shows that a majority of California voters are concerned that the proposed 5% wealth tax on billionaires will force businesses to flee the state. While half of voters support the tax, many are worried about the potential loss of tax revenue and future tax hikes on the middle class if wealthy residents leave.

Why it matters

The billionaire tax proposal has become a divisive issue in California, with concerns that it could backfire by driving away the state's wealthiest residents and the businesses they own or operate. This could have significant implications for the state's tax base and economic outlook.

The details

The UC Berkeley/Politico poll found that 64% of respondents were worried the billionaire tax would drive businesses out of California, while 54% feared it would cause billionaires to leave the state. Fifty-nine percent were concerned about the loss of future tax revenue. Still, half of voters said they would support the tax, which is meant to fund healthcare and education programs.

  • The billionaire tax campaign has collected 25% of the roughly 874,000 signatures needed to qualify for the November 2026 ballot.
  • The deadline to submit signatures is June 24, 2026.

The players

SEIU-United Healthcare Workers West

The sponsor of the proposed 5% wealth tax on California billionaires.

Bernie Sanders

Vermont senator who has campaigned in Los Angeles in support of the billionaire tax proposal.

California billionaires

High-profile billionaires, including Google co-founders Larry Page and Sergey Brin, and Meta founder Mark Zuckerberg, have reportedly moved assets out of California in response to the proposed tax.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.