Union proposes billionaire assets tax in California as crypto figures threaten to leave

A California trade union has proposed a 5% assets tax on residents worth more than $1 billion, prompting threats from some prominent crypto and tech investors to leave the state. The Service Employees International Union–United Healthcare Workers West filed the proposal on Nov. 26, 2025, and said the tax could raise up to $100 billion from about 200 residents to offset federal funding cuts to the state healthcare program.

The measure would also impose a one-time $1 billion levy on residents worth over $20 billion and would tax unrealized gains; it must collect 850,000 signatures before it can be placed on the ballot for the November 2026 election. Prominent figures such as PayPal co‑founder Peter Thiel and Google co‑founder Larry Page have reportedly threatened to leave, and industry leaders have reacted strongly.

Kraken co‑founder Jesse Powell called the proposal "theft," saying it "will be the final straw," while Bitwise CEO Hunter Horsley said many are "quietly discussing leaving or have decided to leave in the next 12 months." Chamath Palihapitiya claimed people with a collective net worth of $500 billion had already left the state.

Research cited in the discussion suggests wealthy migration after wealth taxes may be limited.

Key Topics

Crypto, Billionaire Tax, California, Kraken, Bitwise, Peter Thiel