California Billionaires Are Freaking Out Over a New Tax Proposal

California's proposed billionaire tax, a one-time 5% levy on assets over $1 billion, sparks intense debate over the state's relationship with its wealthiest residents. Introduced by a healthcare union to offset potential Medicaid funding cuts of $100 billion, the tax aims to address stark wealth disparities and a high cost of living. While supporters argue billionaires can afford it, critics, including some within the tech sector, decry it as "communism" and warn of capital flight. This has led to some billionaires exploring relocation to states like Texas, though proving non-residency in California involves meeting 19 subjective criteria. Governor Gavin Newsom opposes the tax, while the union believes the benefits outweigh potential departures, highlighting the core question of what the state owes its wealthiest residents and vice versa.