The “2026 Billionaires Tax Act” would impose a one-time 5% tax on individual wealth exceeding $1 billion. While technically using 2026 wealth figures, it would apply to billionaires who resided in California in 2025. So you cannot hope to flee… at least with your wealth intact. It is a penalty for those who stayed too long hoping that rational minds would prevail in California.The tax is a familiar tactic of many in politics who attack the wealthiest citizens as somehow ripping off the poor. If states can do this for billionaires, it is likely to do it for those in lower tax brackets as they face the choice between financial discipline and tax increases.
When I heard about this my first response was: "Are retroactive taxes legal?" As Professor Turley explains, the question of legality is complicated. What is not complicated is unfairness of reaching back in time to pick a man's pocket.
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