Business
Billionaire tax proposal sparks soul-searching for Californians
The fiery debate about a proposed ballot measure to tax California’s billionaires has sparked some soul-searching across the state.
While the idea of a one-time tax on more than 200 people has a long way to go before getting onto the ballot and would need to be passed by voters in November, the tempest around it captures the zeitgeist of angst and anger at the core of California. Silicon Valley is minting new millionaires while millions of the state’s residents face the loss of healthcare coverage and struggle with inflation.
Supporters of the proposed billionaire tax say it is one of the few ways the state can provide healthcare for its most vulnerable. Opponents warn it would squash the innovation that has made the state rich and prompt an exodus of wealthy entrepreneurs from the state.
The controversial measure is already creating fractures among powerful Democrats who enjoy tremendous sway in California. Progressive icon Sen. Bernie Sanders (I-Vt.) quickly endorsed the billionaire tax, while Gov. Gavin Newsom denounced it .
The Golden State’s rich residents say they are tired of feeling targeted. Their success has not only created unimaginable wealth but also jobs and better lives for Californians, they say, yet they feel they are being punished.
“California politics forces together some of the richest areas of America with some of the poorest, often separated by just a freeway,” said Thad Kousser, a political science professor at UC San Diego. “The impulse to force those with extreme wealth to share their riches is only natural, but often runs into the reality of our anti-tax traditions as well as modern concerns about stifling entrepreneurship or driving job creation out of the state.”
The state budget in California is already largely dependent on income taxes paid by its highest earners. Because of that, revenues are prone to volatility, hinging on capital gains from investments, bonuses to executives and windfalls from new stock offerings, and are notoriously difficult for the state to predict.
The tax proposal would cost the state’s richest residents about $100 billion if a majority of voters support it on the November ballot.
Supporters say the revenue is needed to backfill the massive federal funding cuts to healthcare that President Trump signed this summer. The California Budget & Policy Center estimates that as many as 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could shutter and other healthcare services would be slashed unless a new funding source is found.
On social media, some wealthy Californians who oppose the wealth tax faced off against Democratic politicians and labor unions.
An increasing number of companies and investors have decided it isn’t worth the hassle to be in the state and are taking their companies and their homes to other states with lower taxes and less regulation.
“I promise you this will be the final straw,” Jessie Powell, co-founder of the Bay Area-based crypto exchange platform Kraken, wrote on X. “Billionaires will take with them all of their spending, hobbies, philanthropy and jobs.”
Proponents of the proposed tax were granted permission to start gathering signatures Dec. 26 by California Secretary of State Shirley Weber.
The proposal would impose a one-time tax of up to 5% on taxpayers and trusts with assets, such as businesses, art and intellectual property, valued at more than $1 billion. There are some exclusions, including property.
They could pay the levy over five years. Ninety percent of the revenue would fund healthcare programs and the remaining 10% would be spent on food assistance and education programs.
To qualify for the November ballot, proponents of the proposal, led by the Service Employees International Union-United Healthcare Workers West, must gather the signatures of nearly 875,000 registered voters and submit them to county elections officials by June 24.
The union, which represents more than 120,000 healthcare workers, patients and healthcare consumers, has committed to spending $14 million on the measure so far and plans to start collecting signatures soon, said Suzanne Jimenez, the labor group’s chief of staff.
Without new funding, the state is facing “a collapse of our healthcare system here in California,” she said.
U.S. Rep. Ro Khanna (D-Fremont) speaks during a news conference at the U.S. Capitol on Nov. 18.
(Celal Gunes / Anadolu via Getty Images)
Rep. Ro Khanna (D-Fremont) spoke out in support of the tax.
“It’s a matter of values,” he said on X. “We believe billionaires can pay a modest wealth tax so working-class Californians have the Medicaid.”
The Trump administration did not respond to requests for comment.
The debate has become a lightning rod for national thought leaders looking to target California’s policies or the ultra-rich.
On Tuesday, Sanders endorsed the billionaire tax proposal and said he plans to call for a nationwide version.
“This is a model that should be emulated throughout the country, which is why I will soon be introducing a national wealth tax on billionaires,” Sanders said on X. “We can and should respect innovation, entrepreneurship and risk-taking, but we cannot respect the extraordinary level of greed, arrogance and irresponsibility that is currently being displayed by much of the billionaire class.”
But there isn’t unanimous support for the proposal among Democrats.
Notably, Newsom has consistently opposed state-based wealth taxes. He reiterated his opposition when asked about the proposed billionaires’ tax in early December.
“You can’t isolate yourself from the 49 others,” Newsom said at the New York Times DealBook Summit. “We’re in a competitive environment. People have this simple luxury, particularly people of that status, they already have two or three homes outside the state. It’s a simple issue. You’ve got to be pragmatic about it.”
Newsom has opposed state-based wealth taxes throughout his tenure.
In 2022, he opposed a ballot measure that would have subsidized the electric vehicle market by raising taxes on Californians who earn more than $2 million annually. The measure failed at the ballot box, with strategists on both sides of the issue saying Newsom’s vocal opposition to the effort was a critical factor.
The following year, he opposed legislation by a fellow Democrat to tax assets exceeding $50 million at 1% annually and taxpayers with a net worth greater than $1 billion at 1.5% annually. The bill was shelved before the legislature could vote on it.
The latest effort is also being opposed by a political action committee called “Stop the Squeeze,” which was seeded by a $100,000 donation from venture capitalist and longtime Newsom ally Ron Conway. Conservative taxpayer rights groups such as the Howard Jarvis Taxpayers Assn. and state Republicans are expected to campaign against the proposal.
The chances of the ballot measure passing in November are uncertain, given the potential for enormous spending on the campaign — unlike statewide and other candidate races, there is no limit on the amount of money donors can contribute to support or oppose a ballot measure.
“The backers of this proposed initiative to tax California billionaires would have their work cut out for them,” said Kousser at UC San Diego. “Despite the state’s national reputation as ‘Scandinavia by the Sea,’ there remains a strong anti-tax impulse among voters who often reject tax increases and are loath to kill the state’s golden goose of tech entrepreneurship.”
Additionally, as Newsom eyes a presidential bid in 2028, political experts question how the governor will position himself — opposing raising taxes but also not wanting to be viewed as responsible for large-scale healthcare cuts that would harm the most vulnerable Californians.
“It wouldn’t be surprising if they qualify the initiative. There’s enough money and enough pent-up anger on the left to get this on the ballot,” said Dan Schnur, a political communications professor who teaches at USC, Pepperdine and UC Berkeley.
“What happens once it qualifies is anybody’s guess,” he said.
Lorena Gonzalez, president of the California Federation of Labor Unions, called Newsom’s position “an Achilles heel” that could irk primary voters in places like the Midwest who are focused on economic inequality, inflation, affordability and the growing wealth gap.
“I think it’s going to be really hard for him to take a position that we shouldn’t tax the billionaires,” said Gonzalez, whose labor umbrella group will consider whether to endorse the proposed tax next year.
Peter Thiel speaks at the Cambridge Union in 2024.
(Nordin Catic / Getty Images for the Cambridge Union)
California billionaires who are residents of the state as of Jan. 1 would be impacted by the ballot measure if it passes . Prominent business leaders announced moves that appeared to be a strategy to avoid the levy at the end of 2025. On Dec. 31, PayPal co-founder Peter Thiel announced that his firm had opened a new office in Miami, the same day venture capitalist David Sacks said he was opening an office in Austin.
Wealth taxes are not unprecedented in the U.S. and versions exist in Switzerland and Spain, said Brian Galle, a taxation expert and law professor at UC Berkeley.
In California, the tax offers an efficient and practical way to pay for healthcare services without disrupting the economy, he said.
“A 1% annual tax on billionaires for five years would have essentially no meaningful impact on their economic behavior,” Galle said. “We’re funding a way of avoiding a real economic disaster with something that has very tiny impact.”
Palo Alto-based venture capitalist Chamath Palihapitiya disagrees. Billionaires whose wealth is often locked in company stakes and not liquid could go bankrupt, Palihapitiya wrote on X.
The tax, he posted, “will kill entrepreneurship in California.”
Business
Trader Joe’s expands with two new locations in California
Trader Joe’s plans to open two new stores in California.
The stores will be located in Paso Robles and Anaheim Hills, part of a batch of 10 new nationwide locations the company announced last week.
The additions are part of the company’s growing nationwide expansion.
The popular grocery chain plans to unveil at least 20 locations this year, two of which have already opened their doors, Nakia Rohde, a spokesperson for Trader Joe’s, told The Times.
Trader Joe’s, known for its unique, affordable products and viral tote bags, has undergone rapid growth over the past year, opening 11 new stores in the last two months of 2025.
The Monrovia-based company has been in growth mode since the first store — located in Pasadena — opened in 1967, Rohde said.
“Our goal is always to bring delicious products at great values to as many people and neighborhoods as we can,” Rohde said. “The best way to do that is to open more stores.”
Trader Joe’s announced five new California locations just under a year ago. A store in Costa Mesa opened in December and another Los Angeles location opened in June.
The company’s rapid developments come as grocery stores battle rising inflation, only further complicated by the hike in gas prices.
Some companies have fared better than others. Aldi, a discount grocery chain, plans to add 180 U.S. stores in 2026. Grocery Outlet announced in March that it is closing 36 underperforming stores, including nine in California.
Trader Joe’s is privately held and owned by families who also own a stake in the Aldi supermarket chain, according to its website.
Business
How California Pistachio Farmers Profit From Iran War and Viral Dubai Chocolate Trends
Land area devoted to pistachio growing
Twenty years ago, California farmers bet big on the pistachio. The little green nut was considered niche in the United States, but it was a staple in Iran and the surrounding region.
That gamble has paid off. Demand for pistachios is high as wellness trends draw people to high-fiber, protein-rich foods. They are also a key ingredient of Dubai chocolate, the incredibly popular chocolate bar filled with pistachio cream and kataifi, or shredded phyllo.
Pistachio orchards cover more than 600,000 acres in California, up from 100,000 in 2001. The San Joaquin Valley of California has near-perfect conditions for pistachios, a mix of hot, dry summers and cold, wet winters. The United States is now the world’s largest producer and exporter of pistachios. Iran is second.
Yet more than a month into the war with Iran, ship traffic through the Strait of Hormuz is at historically low levels, which has stymied exports from the region.
The potential removal of a major player in the market is good news for farmers in California, who are likely to get higher prices for their pistachios.
“With this war, it’s going to limit what Iran is able to do, able to ship, to customers in Europe and China,” said Adam Orandi, who farms 1,600 acres of pistachio orchards in the San Joaquin Valley. His father imported saplings from Iran in the 1970s.
For hundreds of years, Iran dominated the market. Pistachios first found their way to California in the 1930s when an American botanist, William E. Whitehouse, brought the nuts back from Iran. Yet only one variety flourished, which was named the “Kerman.”
Pistachio orchards expanded in the 1970s in California, but Iran continued to control the global market until the Iranian hostage crisis of 1979, when students stormed the U.S. Embassy in Tehran and took dozens of Americans hostage.
Various trade embargoes against Iran were imposed and lifted in the following years, but a 241 percent tariff that was put in place in 1986 essentially ended Iran’s reign in the pistachio market in the United States.
Since 2011, the United States has consistently surpassed Iran as the largest exporter of pistachios. Iran has continued to lose market share.
The U.S. leads Iran in pistachio exports
“Production in Iran has been very erratic,” said David Magaña, who analyzes the fresh produce and tree nut industry at Rabobank. “Fifteen years ago, Iran accounted for 40 to 50 percent of global pistachio exports. More recently, Iran’s share has been more like 20 percent.”
The wholesale price of in-shell pistachios — what large manufacturers or retailers pay — has climbed 20 percent in the last 18 months to $4.57 a pound, according to Expana, a market data provider for the agriculture and food industries. In stores, consumers are paying significantly more.
The market is divided into two products: in-shell pistachios, which are sold whole and often roasted, and pistachio “kernels,” the seeds that are used in food production. The explosion of interest in pistachios as an ingredient in desserts and other foods has sharply increased demand for the kernels.
“For years, pistachios were a one-trick pony. They were a salty snack,” Mr. Orandi said. Just a few years ago, he added, he “couldn’t give the kernels away.”
In recent years, California growers have devoted more acreage to pistachios, and the state produced a record 1.6 billion pounds last year. American Pistachio Growers, a trade association, projected that California trees will bear more than two billion pounds of pistachios by 2031.
Pistachio imports have shot up worldwide
But there is one thing standing between the farmers and those projections: California’s water regulations, which people in the industry said may restrict the ability of some orchards to expand.
Pistachios, like other tree nuts, require large amounts of water. The amount needed by an acre of pistachio trees for an optimal crop yield depends on a number of factors, including soil salinity and the age of the trees.
On average, one acre of pistachios consumes over one million gallons of water in a year — slightly less than almonds and walnuts, according to estimates from University of California Agriculture and Natural Resources. For areas in California prone to droughts, the pistachio boom could add stress to the state’s already thin water resources.
The vast majority of pistachios in California — in addition to other nuts and crops — grow in areas classified as of “extremely high” water stress as defined by the World Resources Institute, an environmental research firm. Compared to two decades ago, the amount of water used annually for pistachios in these areas is now tens of billions more gallons than before.
Difference in water use in pistachio-growing regions between 2007 and 2025
Still, there may be benefits to pistachios emerging as a major nut crop of the state, according to Josué Medellín-Azuara, a water resources researcher and professor of environmental engineering at University of California, Merced. They are more tolerant to drought and water salinity compared to walnuts and almonds, and they are consistently a high value crop, he said.
The profitability of these water-intensive crops creates a paradox for the farmers planting them, said Rich Pauloo, a hydrologist. “They consume more water, but you get more money per drop of water.”
Business
Barbie brand takes another hit with festival flop
Jacqueline Kerr arrived to a Florida convention center Friday, suitcases stuffed with intricate, hand-made costumes — pink sequined ball gowns, a leopard bodysuit and an all-white rhinestone cowgirl ensemble — all paying homage to classic Barbie looks.
None of them made it out of her suitcase.
Kerr and her best friend had spent hundreds of dollars preparing for Barbie Dream Fest, a three-day event that organizers touted as a chance for fans to “live the dream life.”
But when Kerr arrived Friday, it felt more like a nightmare.
“I was so excited to have an event where I could finally put on my most Barbie-esque outfits and have an excuse to wear them without looking like a fool,” the 32-year-old from Florida said. “We were so disillusioned after that first day.”
Hundreds of posts from angry attendees flooded social media sites this weekend, many of whom said the event was a far cry from what was advertised. The event was organized by Mischief Management in Fort Lauderdale, Fla.
Tickets for adults were hefty, ranging from $69 for a day pass to $449 for a 3-day VIP experience. Kerr and her friend purchased a pass that cost $249 per person and included a swag bag that she never received, she said.
Mischief Management confirmed to The Times that the company is issuing full refunds to all ticket holders. Kerr was told the refund would process in three to four weeks.
The event was meant to be an intimate fan convention designed to offer fans closer access to the Barbie universe, a spokesperson for the company said.
“We appreciate the passion and engagement from the Barbie community,” said a spokesperson from Mischief Management. “Bringing fans together — alongside Barbie role models, designers, partners, and global icons who embody the true spirit of Barbie — was at the heart of this event.”
The event comes during a tough time for the Barbie brand. The doll, one of the most popular toys in Mattel’s inventory, has struggled to garner sales, despite gaining momentum in 2023, when the “Barbie” movie had widespread success.
Mattel’s shares plummeted in February after the company announced weak holiday season sales, with Barbie products taking a big hit. The company recently announced it’s laying off 65 employees in May, and let go of 89 other workers in January.
The Barbie brand was licensed by Mischief Management, a spokesperson for Mattel said.
“We want every fan experience to be an excellent one,” the spokesperson said.
The event sold ticket-holders a big dream, including an ’80s-themed neon roller-skating party, an interactive Barbie Dream House, a bicycle course and a free glam bar. The schedule also boasted a star-studded lineup of speakers, including Serena Williams and Angel Reese.
But that dream fell flat, attendees said.
Instead, eventgoers roamed a largely empty convention center with bare concrete walls void of pink and glitter. A small, makeshift rink sectioned off by barricades was stationed in the corner, and the glam bar was closed down by the second day of the event. The bicycle course featured four small bikes with training wheels, only suitable for young children.
Kerr and her friend worked their way through the convention in less than 45 minutes on Friday, she said.
Williams, Reese and other celebrities did hold speaking events over the weekend, though the audience was mostly empty, Kerr said. The Mattel designers responsible for making Barbie also spoke at the convention.
The schedule promoted a free glam bar, which wasn’t staffed for most of the weekend, said Brielle Cenci, a vendor who paid several thousand dollars to have a booth.
Cenci owns a company that sells mermaid clip-on hair extensions and flew in from New Jersey. The event felt poorly organized and vendors received little communication ahead of the convention that only dwindled as the weekend went on, she said.
Vendors expected the convention to be packed with thousands of people, but Cenci said she saw only about 100 attendees a day.
“It felt like a farmers market,” Cenci said. “It was a ghost town. It felt awkward for the people attending, because it was so silent and empty… We were just as in the dark about the event as the attendees were.”
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