California may face a potential departure of its wealthiest residents as prominent crypto billionaires express intentions to relocate due to a proposed tax on assets. The Service Employees International Union-United Healthcare Workers West has introduced a 5% tax on individuals with assets exceeding $1 billion, aiming to raise approximately $100 billion from around 200 residents to offset federal funding cuts to the state's healthcare program.
The proposal, filed on November 26, 2025, also includes a one-time tax of $1 billion on those with net worths over $20 billion, focusing on unrealized gains rather than income. To place the measure on the ballot for the 2026 elections, it must gather 850,000 signatures.
High-profile figures such as PayPal co-founder Peter Thiel and Google co-founder Larry Page have voiced their discontent, suggesting that a significant exit could deprive the state of essential tax revenue. Industry leaders like Jesse Powell, co-founder of Kraken, have labeled the tax as “theft,” while Bitwise CEO Hunter Horsley noted that many influential individuals are contemplating leaving in the coming year.