Politics
Explaining California’s billionaire tax: The proposals, the backlash and the exodus
The battle over a new tax on California’s billionaires is set to heat up in the coming months as citizens spar over whether the state should squeeze its ultra-rich to better serve its ordinary residents.
The proposed billionaire tax that triggered the tempest is still far from being approved by voters or even making the ballot, but the idea has already sparked backlash from vocal tech moguls — some of whom have already shifted their bases outside the state.
Under the Billionaire Tax Act, Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth. The Service Employees International Union-United Healthcare Workers West, the union behind the act, said the measure would raise much-needed money for healthcare, education and food assistance programs.
Other unions have piled on billionaires, targeting the rich in Los Angeles.
A group of Los Angeles labor unions said Wednesday that it is proposing a ballot measure to raise taxes on companies whose chief executive officers earn 50 times more than their median-paid employees.
Here is how this fight could continue to play out in the Golden State:
Who would be affected?
The California billionaire tax would apply to about 200 California billionaires who reside in the state as of Jan. 1. Roughly 90% of funds would go to healthcare and the rest to public K-14 education and state food assistance.
The tax, due in 2027, would exclude real estate, pensions and retirement accounts, according to an analysis from the Legislative Analyst’s Office, a nonpartisan government agency. Billionaires could spread out the tax payment over five years, but would have to pay more.
Which billionaires are already distancing themselves from California?
Google co-founders Larry Page and Sergey Brin
Google is still headquartered in California, but December filings to the California Secretary of State show other companies tied to Page and Brin recently converted out of the state.
One filing, for example, shows that one of the companies they managed, now named T-Rex Holdings, moved from Palo Alto to Reno last month.
Business Insider and the New York Times earlier reported on these filings. Google didn’t respond to a request for comment.
Palantir co-founder Peter Thiel
Thiel Capital, based in Los Angeles, announced in December it opened an office in Miami. The firm didn’t respond to a request for comment. Thiel recently contributed $3 million to the political action committee of the California Business Roundtable, which is opposing the ballot measure, records provided to the Secretary of State’s Office show.
Oracle co-founder and Chief Technology Officer Larry Ellison
Years before the wealth tax proposal, Ellison began pulling back from California, but he’s continued to distance himself farther from the state since the proposal emerged.
Last year, Ellison sold his San Francisco mansion for $45 million. The home on 2850 Broadway was sold off-market in mid-December, according to Redfin.
Oracle declined to comment.
DoorDash co-founder and Chief Technology Officer Andy Fang
Fang, who was born and raised in California, said on X that he loves the state but is thinking about moving.
“Stupid wealth tax proposals like this make it irresponsible for me not to plan leaving the state,” he said.
DoorDash didn’t respond to a request for comment.
What would it still take to become law?
To qualify for the ballot, proponents of the proposal, led by the healthcare union, must gather nearly 875,000 registered voter signatures and submit them to county elections officials by June 24.
If it makes it on the November ballot, the proposal would be the focus of intense scrutiny and debate as both sides have already lined up big war chests to bombard voters with their positions. A majority of voters would need to approve the ballot measure.
Lawyers for billionaires have also signaled the battle won’t be over even if the ballot measure passes.
“Our clients are prepared to mount a vigorous constitutional challenge if this measure advances,” wrote Alex Spiro, an attorney who has represented billionaires such as Elon Musk in a December letter to California Gov. Gavin Newsom.
What are the initiative’s chances?
It’s unclear if the ballot measure has a good chance of passing in November. Newsom opposes the tax, and his support has proved important for ballot measures.
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. The following year, he opposed legislation to tax assets exceeding $50 million. The bill was shelved before the Legislature could vote on it. A bill that would impose an annual tax on California residents whose net worth surpassed $30 million also failed in 2020.
However, Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Fremont) have backed the wealth tax proposal, and Californians have passed temporary tax measures before. In 2012, they approved Proposition 30 to increase sales tax and personal income tax for residents with an annual income of more than $250,000.
Could it solve California’s problems?
The Legislative Analyst’s Office said in a December letter that the state would probably collect tens of billions of dollars from the wealth tax, but it could also lose other tax revenue.
“The exact amount the state would collect is very hard to predict for many reasons. For example, it is hard to know what actions billionaires would take to reduce the amount of tax they pay. Also, much of the wealth is based on stock prices, which are always changing,” the letter said.
California economist Kevin Klowden said the tax could create future budget problems for the state. “The catch is that this is a one-off fix for what is a systemic problem,” he said.
Supporters of the proposal said the measure would raise about $100 billion and pushed back against the idea that billionaires would flee.
“We see a lot of cheap talk from billionaires,” said UC Berkeley law professor Brian Galle, who helped write the proposal. “Some people do actually leave and change their behavior, but the vast bulk of wealthy people don’t, because it doesn’t make sense.”
Still, the pushback has been escalating.
Palo Alto-based venture capitalist Chamath Palihapitiya estimates that the lost revenues from the billionaires who have already left the state would lead to more losses in tax revenues than gained by the new tax.
“By starting this ill-conceived attempt at an asset tax, the California budget deficit will explode,” he posted on X. “And we still don’t know if the tax will even make the ballot.”
The union backing the initiative says “the billionaire exodus narrative” is “wildly overstated.”
“Right now, it appears the overwhelming majority of billionaires have chosen to stay in California past the Jan. 1 deadline,” said Suzanne Jimenez, chief of staff at SEIU-United Healthcare Workers West. “Only a very small percentage left before the deadline, despite weeks of Chicken Little talking points claiming a modest tax would trigger a mass departure.”
Times staff writer Seema Mehta contributed to this report.
Virginia’s top court on Friday struck down a congressional map drawn by Democrats and recently approved by voters, dealing a major blow to the party as it struggles to keep pace with Republicans in the nation’s redistricting battle.
The ruling will wipe out four newly drawn Democratic-leaning U.S. House districts in Virginia and means that Republicans will enter the midterm elections with a structural advantage from their moves to carve out more red districts across the country.
Congressional maps have for generations been drawn once a decade, after the census, to account for population shifts. But last year, President Trump started a rare, mid-decade gerrymandering war when he persuaded Texas officials to draw a new map to help Republicans as they face midterm headwinds. California countered with a map favoring Democrats. Other red and blue states followed.
After the Virginia map passed in a statewide referendum late last month, Democrats thought that they had battled Republicans to a draw, or that they had even eked out a small advantage. Then a ruling by the U.S. Supreme Court prompted several Southern states to work to pass new maps, which will favor Republicans.
Now, the rejection of the new Virginia map means that across the country, Democrats stand to lose half a dozen safe seats, and possibly more, from redistricting alone.
Still, Republicans face a challenging political environment in their bid to retain control of their slim House majority, including worries about the economy, the unpopular war with Iran, high gas prices and Mr. Trump’s sagging approval ratings.
In its 4-to-3 decision, the Virginia Supreme Court wrote that Democratic legislators had violated the state’s constitution with their move to enact a new map meant to give their party 10 out of the state’s 11 U.S. House seats, up from the six it currently controls. Virginia voters approved a constitutional amendment to allow for the map in a referendum.
The problem, the court’s majority suggested, was that the first vote on the amendment in the General Assembly, which would authorize Democrats to redraw the map, occurred days before last fall’s legislative elections — meaning that some Virginians who cast their ballots early did so without knowing how their state lawmakers would vote on the new map.
That, the justices wrote, violated the process in the State Constitution.
“This constitutional violation incurably taints the resulting referendum vote and nullifies its legal efficacy,” the majority wrote.
Mr. Trump and Republicans celebrated the decision.
“Huge win for the Republican Party, and America, in Virginia,” the president posted on his social media site.
Democrats seemed despondent over the decision after eight months and nearly $70 million invested in passing the referendum.
Representative Hakeem Jeffries of New York, the House minority leader, who lobbied Virginia legislators to advance their redistricting push and then campaigned for the referendum, said that “the decision to overturn an entire election is an unprecedented and undemocratic action that cannot stand.”
He added: “We are exploring all options to overturn this shocking decision.”
What those options are was not clear in the immediate aftermath of the decision.
Some legal experts believe that the Virginia Supreme Court’s ruling may be the final word on the state’s maps before the election. That is because the case involved a state law challenge about whether state lawmakers had followed rules laid out in the Virginia Constitution, not a question of federal law or the U.S. Constitution.
Gov. Abigail Spanberger, a Democrat, said in a statement that “I am disappointed by the Supreme Court of Virginia’s ruling, but my focus as governor will be on ensuring that all voters have the information necessary to make their voices heard this November.”
Since the U.S. Supreme Court’s ruling late last month that further weakened the Voting Rights Act, Republicans in Tennessee, Alabama and Louisiana have taken steps to draw new maps before the midterms. Those efforts could net Republicans a handful of additional safe seats before voters cast a ballot in November. South Carolina is also exploring a new map before November.
While Democrats have themselves grown more ruthless about gerrymandering, they are broadly struggling to keep up.
In part that is because years ago, some Democratic-controlled states like Virginia installed independent commissions to oversee their map-drawing process in an effort to insulate it from politics. But Republicans kept the power in state legislatures, allowing states like Texas, Florida, North Carolina and Missouri to enact partisan maps with few logistical hurdles.
In Virginia, voters approved the amendment to override the independent commission by about three percentage points after the General Assembly had passed it twice. But Republicans challenged nearly every aspect of the process. Most of these lawsuits were filed before in a county court in the rural southwestern corner of the state, where a judge repeatedly ruled in the Republicans’ favor. These rulings were appealed to the State Supreme Court.
In lawsuits, Republicans argued that the language in the amendment was misleading, that the new districts were not drawn compactly, that it was improper to vote on redistricting at a legislative session that had convened to discuss budget issues and that a state law required county clerks to post notices about the amendment months before it was actually voted on.
One of the most critical questions concerned the sequence of events in Virginia’s complex amendment process. Before voters weigh in on an amendment to the State Constitution, the General Assembly must approve it twice, with an election for the state’s House of Delegates taking place between the two votes. The first vote for this amendment was on Oct. 31, just days before the state election. With hundreds of thousands of Virginians having already voted, Republicans argued that the legislative action had come too late.
The court sided with that argument.
“Early Virginia voters unknowingly forfeited their constitutionally protected opportunity to vote for or against delegates who favor or disfavor amending the Constitution by not anticipating a legislative vote on a constitutional amendment four days before the last day of voting,” the court’s majority wrote in its ruling.
But Democrats’ loss in Virginia is likely to only further stoke more redistricting battles. Already, the party’s lawmakers in New York and Colorado have signaled a desire to try and redraw their maps before the 2028 elections, and Virginia Democrats are likely to be in a similar position, since the court mainly took issue with the process, not with the resulting map.
Abbie VanSickle contributed reporting.
Politics
Gorsuch says ideological divides on Supreme Court come down to ‘how you read law,’ not politics
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Supreme Court Justice Neil Gorsuch said differences among his colleagues on the high court are often less about politics than they are about diverging approaches to constitutional interpretation — a dynamic, he said, that influences both the court’s rulings and its internal relations.
“That has nothing to do with politics,” Gorsuch told Fox News Digital in a recent interview. “That has to do [with] how you read law. Interpretive methodologies.”
Gorsuch, who was nominated by President Donald Trump in 2017, has described himself as a “textualist,” noting his approach focuses on interpreting legal texts based on the ordinary meaning of the words as written. The philosophy is linked to originalism — or the view that the Constitution should be interpreted based on its original public meaning when it was adopted.
Other justices have different interpretations, including ones that allow for evolving interpretations over time. Gorsuch stressed that differences, while significant, are not inherently personal.
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U.S. Supreme Court Justice Neil Gorsuch speaks at the Reagan Library on May 5, 2026, in Simi Valley, Calif. (Getty Images)
“At the end of the day, you’re trying to get to the right answer under the law,” he said, adding that disagreement is an expected, and healthy, part of the process.
His remarks come as the federal judiciary and members of the Supreme Court have come under increasing scrutiny in recent years, including by Trump and his allies, who have criticized the courts for impinging on what they see as the duties of the executive branch.
Trump took to Truth Social last month to criticize the Supreme Court’s conservative majority for showing him “very little loyalty” in blocking his so-called “Liberation Day” tariffs in February.
He also suggested they might block his executive order seeking to end so-called “birthright citizenship” in the U.S.
“Certain ‘Republican’ Justices have just gone weak, stupid, and bad, completely violating what they ‘supposedly’ stood for,” Trump said.
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President Donald Trump greets Chief Supreme Court Justice John Roberts as he arrives to deliver an address to a joint session of Congress in 2025. (Win McNamee/Getty Images)
He contrasted this with liberal justices on the court, whom Trump said “stick together like glue, totally loyal to the people and ideology that got them there.”
Gorsuch, for his part, stressed that the justices often share plenty of common ground, even if their interpretation of the Constitution prompts them to reach different conclusions.
That approach, he suggested, carries over into how the justices work together behind closed doors — where collaboration and debate are central to the high court to perform its constitutional duties.
FEDERAL JUDGE BLOCKS TRUMP’S BIRTHRIGHT CITIZENSHIP BAN FOR ALL INFANTS, TESTING LOWER COURT POWERS
The U.S. Supreme Court building is shown in Washington, D.C., on Nov. 13, 2023, as the court unveiled a new ethics code following scandals involving gifts and vacations received by some justices. (Mandel Ngan/AFP)
“The framers understood that people would come to the table with different views,” Gorsuch told Fox News Digital. “The goal is to reason together.”
While ideological divides can be sharp, Gorsuch emphasized that culture at the high court is built on mutual respect.
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“If you sit and listen to someone long enough, you’re going to find something you can agree on,” he added. “Maybe you start there.”
Two press freedom groups that own shares in Paramount Skydance are demanding to see the company’s books and internal documents, citing allegations that the company’s leaders may have promised favors to the White House to win approval for Paramount’s deal to acquire Warner Bros. Discovery.
The letter, sent Thursday to Paramount chief legal officer Makan Delrahim, says that media reports alleging that Paramount owner David Ellison and others promised favors to the Trump administration “create credible concern that Paramount leadership has offered, solicited, or effectuated a corrupt exchange,” which the groups argue would “constitute a breach of fiduciary duties” and open the company up to a “range of potential civil and criminal penalties.”
The letter cites Delaware law that allows stockholders to inspect the company’s books and records “for any proper purpose.”
Paramount declined to comment on the letter.
Among the issues raised in the letter are promises reportedly made by David Ellison and his father, Oracle billionaire Larry Ellison, that they would make “sweeping” changes at the news network CNN, which is owned by Warner Bros. Discovery.
The Ellison family acquired Paramount, which includes CBS and the storied Melrose Avenue film studio, last summer.
The letter cites changes implemented in CBS since their acquisition, including their decision to end late night television house Stephen Colbert’s show days after he characterized a settlement Paramount reached with Trump as a “big fat bribe.”
Under Ellison’s ownership, the letter says, numerous high-profile reporters have left the network and its ratings have dropped to “historic lows.”
Larry Ellison, who is backing the financing of Paramount’s proposed takeover of Warner, reportedly told White House officials that Paramount would “implement the CBS playbook” at CNN if the merger is approved, and remove anchors and commentators at the cable news network that Trump doesn’t like, according to the letter.
The effort comes just two weeks after Warner Bros. Discovery shareholders overwhelmingly approved the proposed merger. Investors have supported the Larry Ellison family takeover, which would become the biggest Hollywood merger in nearly a decade. The deal would pay Warner stockholders $31 per share — four times the stock price a year ago.
The letter was written on behalf of the Freedom of the Press Foundation, which develops secure communication tools for journalists and tracks violations of press freedom, and Reporters Without Borders, which tracks press freedom globally.
The organizations are being represented by former federal prosecutor Brendan Ballou, who established the Public Integrity Project this year to challenged alleged government corruption, as well as Delaware attorney Ronald Poliquin.
The missive, which could be a precursor to a lawsuit, opens another avenue of attack against the controversial $111-billion deal, which would transform the smaller Paramount into an industry titan.
With Warner Bros. Discovery, the Ellisons would also control HBO, TBS and the vast film and TV library of Warner Bros., which includes the Harry Potter, DC Comics, and Scooby-Doo, in addition to CNN.
Paramount, led 43-year-old David Ellison, wants to finalize its Warner Bros. takeover by the end of September. President Trump favors the deal; he has long agitated for changes at CNN.
But the proposed merger would saddle the combined company with $79 billion in debt, stoking fears that Paramount would be forced to make steep cost cuts to juggle such a large debt load.
Politicians, unions and progressive groups separately have pressed California Atty. Gen. Rob Bonta to scrutinize the proposed merger, hoping that he brings an antitrust lawsuit in an attempt to upend the deal.
More than 4,000 film industry workers, including Ben Stiller, Bryan Cranston, Ted Danson, J.J. Abrams, Jane Fonda and Kristen Stewart, have signed an open letter imploring Bonta and other regulators to block the merger. The group lamented the proposed tie-up, saying it “would reduce the number of major U.S. film studios to just four.”
Opponents fear the consolidation would lead to massive layoffs and diminish the quality of programming that Warner Bros., CNN and HBO are known for.
Hollywood has sustained thousands of layoffs over the last seven years since Walt Disney Co. swallowed Fox’s entertainment assets in another huge merger. In addition, the film production economy hasn’t recovered from shutdowns during the 2023 labor strikes. An estimated 42,000 entertainment industry jobs were lost from 2022 and 2024.
On Thursday, 34 California Democrats in Congress also sent a letter to Bonta, encouraging him to look closely at the merger.
The deal is expected to become one of the largest leveraged buyouts ever.
Ballou, who is working with the press freedom groups, previously served as a Justice Department special counsel with expertise in private equity transactions.
He resigned from the Justice Department in January 2025 when Trump returned to office. In his book, “Plunder: Private Equity’s Plan to Pillage America,” Ballou examined large leveraged buyouts and found that many of which resulted in bankruptcies.
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