Debate has intensified over a wealth tax targeting ultra-high-net-worth individuals in California. While some billionaires raised the prospect of cutting ties with the state government or relocating over tax burdens, other wealthy figures sharply criticized that stance and publicly defended the need to tax.
On the 15th, Fortune reported that Dave Nixon, a former healthcare corporations executive, backed California's proposed "2026 Billionaire Tax Act." The bill would impose a one-time 5% levy on the net worth of residents with net worth of $1 billion (about 1.4 trillion won) or more. Ultra-high-net-worth individuals in this category currently do not pay a separate wealth tax beyond income and capital gains taxes. The state projected the measure would raise about $100 billion in revenue. It said roughly 90% of the funds would go to medical programs, with the remainder allocated as dedicated funding for education, food assistance, and tax collection operations.
Nixon has been a member of Patriotic Millionaires, a group of wealthy people advocating fair taxes and social responsibility. In an interview with Fortune, he said that education, healthcare, and social equity are his core values. He said he felt those values were not sufficiently respected in Florida, and he assessed that California still addresses those issues more proactively.
Nixon has also expressed skepticism in past op-eds about claims that the wealthy would depart en masse because of tax hikes. He criticized that as an "exaggerated threat to block tax increases in the state legislature." He argued that California imposing higher taxes on wealthy people like him is, in fact, a factor that makes it a state where he wants to live.
Those comments contrasted with the moves of some billionaires. Venture investor Peter Thiel and Google co-founders Larry Page and Sergey Brin were reported to be weighing moves to Florida over tax burdens. Nixon called their steps "disgusting and greedy."
Nixon noted that California has long provided a favorable environment for the growth of technology corporations. He said the state has fostered the innovation economy through tax incentives and policy support, and that the Google founders were beneficiaries of that environment. More recently, California decided to introduce artificial intelligence education into high schools, community colleges, and the California State University system in partnership with Google, Adobe, IBM, and Microsoft.
Not all billionaires are considering relocating, however. Jensen Huang, Nvidia chief executive officer (CEO), said he has "never thought about leaving California over taxes."
Some also argued that the wealth tax should be viewed as a means to secure healthcare funding. Maureen Kennedy, a member of Patriotic Millionaires, said it is the state government's responsibility to raise funds to ease the burden of medical costs, noting that California's healthcare cost growth is outpacing wage growth. Kennedy cited statistics showing that in recent years the growth rate of healthcare expenditure has significantly exceeded average wage growth.
Kennedy said that high-earning workers before retirement pay a substantial share of their income in taxes, but billionaires do not. A study released by the National Bureau of Economic Research found that billionaires' average effective tax rate is lower than that of the general public or high earners. Kennedy stressed that taxing billionaires is not punishment but a measure to make them pay their fair share.