California Wealth Tax Risks Mass Business Exodus, Warns Entrepreneur
WHO:
Fortune - Six Nobel Prize-winning economists endorsed California's Proposition 40 in a letter.
NY Post - Dave Regan and SEIU-United Healthcare Workers West are facing allegations in a lawsuit.
NY Post - California entrepreneur Eric Schiffer, chairman of family office Patriarch and CEO of Reputation Management Consultants.
Fox Business - Billionaire Mark Cuban, Rep. Ro Khanna, D-Calif., California Democratic Party, California Republican gubernatorial candidate Steve Hilton.
WHAT:
Fortune - The economists estimated that California's 250 billionaires are collectively worth $2.3 trillion.
Fortune - The California Legislative Analyst's Office estimates the wealth tax could raise $100 billion in revenue.
Fortune - A recent poll from the Public Policy Institute of California found that 52% of likely voters would vote yes on the tax, while 46% would vote no.
Fortune - Proposition 41 has a lead of 51% in favor versus 44% against, and Proposition 42 is leading 54% to 43%.
NY Post - A 67-page civil lawsuit claims the union used a ballot measure to "extort" small health care organizations.
NY Post - Proposition 40 would impose a one-time 5% levy on billionaires' net worth.
Fox Business - Payments for the tax are due starting in 2027.
Fox Business - Schiffer predicts a "giant sucking sound" of entrepreneurs leaving California if the measure is approved.
Fox Business - The tax would be due in 2027, with payments potentially spread over five years at an additional cost.
Fox Business - The California Legislative Analyst's Office estimates that the wealth tax would temporarily generate tens of billions of dollars over several years.
WHERE:
NY Post - California.
WHEN:
NY Post - The lawsuit was filed on September 18 in the U.S. District Court.
NY Post - Proposition 40 is on the ballot for November 3.
WHY:
Fortune - The economists argued that if California votes to tax billionaires, it could "kickstart a movement" to tax ultra-high-net-worth individuals in other states and countries.
NY Post - The lawsuit alleges that the union acted like the mob in a felony racketeering "shakedown" scheme.
Fox Business - Schiffer argues that the tax could lead to a loss of businesses, jobs, investment, and tax revenue in California.
Fox Business - Schiffer states that billionaires feel "under attack" and disrespected by the proposed tax.
HOW:
NY Post - The lawsuit describes the union's tactics as mob-like in nature.
Fox Business - The tax would apply to billionaires who were California residents on January 1, 2026.
Fox Business - Real estate, pensions, and retirement accounts would generally be excluded from the tax.
(UPDATED September 19, 2026 21:56 UTC)
In a significant endorsement, six Nobel Prize-winning economists have come out in support of California's Proposition 40, highlighting the state's 250 billionaires who are collectively worth an estimated $2.3 trillion. The California Legislative Analyst's Office projects that a wealth tax could generate around $100 billion in revenue, and recent polling shows that 52% of likely voters favor the tax, while 46% oppose it. Additionally, Proposition 41 currently leads with 51% in favor compared to 44% against, and Proposition 42 is ahead with 54% supporting it versus 43% opposing, as the economists suggest that taxing billionaires could inspire similar movements in other regions.
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(UPDATED September 19, 2026 17:56 UTC)
Dave Regan and SEIU-United Healthcare Workers West are facing serious allegations in a newly filed civil lawsuit. The 67-page complaint claims the union used a ballot measure to extort small health care organizations, likening their tactics to a mob-style shakedown in a felony racketeering scheme. This lawsuit was submitted to the U.S. District Court on September 18.
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(UPDATED September 19, 2026 16:58 UTC)
California entrepreneur Eric Schiffer, who chairs the family office Patriarch and leads Reputation Management Consultants, is voicing concerns over Proposition 40, which proposes a one-time 5% levy on billionaires' net worth, with payments starting in 2027. Schiffer warns that if approved, the tax could drive entrepreneurs out of the state, leading to a loss of businesses, jobs, and investment, while the California Legislative Analyst's Office estimates it could generate tens of billions of dollars temporarily. Proposition 40 is set to be on the ballot for November 3, and it would apply to billionaires who were California residents on January 1, 2026, though real estate and retirement accounts would generally be excluded from the tax.