California’s 5% wealth tax gamble triggers capital flight, including Mark Zuckerberg. What it means for investors

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could determine whether a wealth levy becomes law.California’s November midterm elections will decide control of key legislative committees and shape the political appetite for major tax changes. Pro-tax lawmakers argue that increased revenue is needed to fund services, but opponents view the 2026 ballot outcomes as a referendum on tax competitiveness.Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAPMost Americans earn a dismal 0.39% APY on their cash at big banks. Unlock up to 4.05% APY and pay $0 in account fees instead with a Wealthfront Cash AccountRecent reporting from the Los Angeles Times found that high-profile figures, like Mark Zuckerberg, have explored property in other states (1) — including the recent purchase of a $170M property in Miami (2). The news comes as discussion around a state-level wealth tax gains traction.And Zuckerberg isn’t alone in his exit.Filmmaker Steven Spielberg has already shifted his primary residence outside of California. Other wealthy residents are said to be reconsidering their long-term ties to the Golden State.At the center of the debate is a proposal targeting roughly 200 California billionaires. The measures would impose a one-time 5% “wealth levy,” paid as 1% annually over five years, on worldwide net worth above a certain threshold (3). The levy excludes some real estate holdings, according to a proposal authored by economists at the University of California, Berkeley.Critically, the draft language includes a residency requirement tied to Jan 1, 2026. Only taxpayers who establish (or maintain) California residency by that date would be subject to the levy.Supporters, including labor unions and progressive lawmakers, argue that the tax could generate billions of dollars to fund healthcare, education and other public services (4). They often frame the tax as a corrective measure to wealth inequality.Opponents, including tech leaders and Gov. Gavin Newsom, warn that such a policy risks accelerating an exodus of high earners and capital, weakening the state’s tax base and broader economy.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,856.50 -19.50 (-0.28%)Dow Futures48,518.00 -278.00 (-0.57%)Nasdaq Futures25,041.75 -86.50 (-0.34%)Russell 2000 Futures2,615.70 -21.90 (-0.83%)VIX21.91 +0.76 (+3.60%)Gold5,121.40 -13.30 (-0.26%)Trending tickersAVGO Broadcom Inc. 317.53 +3.69 (+1.18%)TTD The Trade Desk, Inc. 25.17 +0.17 (+0.68%)HOOD Robinhood Markets, Inc. 82.21 +6.14 (+8.07%)ZM Zoom Communications, Inc. 78.02 +4.52 (+6.15%)JD JD.com, Inc. 25.40 -0.24 (-0.94%)PortfolioSign in to access your portfolioSign inTop gainersSTVN Stevanato Group S.p.A. 17.50 +2.77 (+18.81%)GLXY Galaxy Digital 24.34 +3.66 (+17.70%)MRNA Moderna, Inc. 57.80 +7.97 (+15.99%)SSRM SSR Mining Inc. 33.26 +4.33 (+14.97%)COIN Coinbase Global, Inc. 208.93 +26.57 (+14.57%)Top losersIBRX ImmunityBio, Inc. 9.00 -1.00 (-10.00%)EMAT Evolution Metals & Technologies Corp. 8.51 -0.70 (-7.65%)FROG JFrog Ltd. 39.19 -3.05 (-7.22%)BF-B Brown-Forman Corporation 26.26 -1.87 (-6.65%)AXTI AXT, Inc. 39.13 -2.63 (-6.30%)Most activeNVDA NVIDIA Corporation 183.04 +2.99 (+1.66%)PLUG Plug Power Inc. 2.4800 +0.2500 (+11.21%)ONDS Ondas Inc. 10.51 +0.49 (+4.89%)INTC Intel Corporation 45.58 +2.48 (+5.75%)NOK Nokia Oyj 8.15 +0.08 (+0.99%)Top economic eventsEarnings eventsMy earnings eventsEarnings events