California voters are set to decide whether to impose a new tax on the state’s billionaires as IRS data show thousands of taxpayers, and billions of dollars in income, are already flowing out of the state.

Proposed Tax Details

The proposed ballot initiative, backed by the Service Employees International Union, would impose a one-time 5% wealth tax on Californians with a net worth exceeding $1 billion. The measure, which has qualified for the November ballot, would apply retroactively to Californians who were residents as of Jan. 1, 2026.

Supporters argue the tax would generate billions of dollars for healthcare and education, while critics warn it could drive wealth and investment out of California. Billionaire investor Mark Cuban has warned that the measure could influence not only where billionaires live, but where investors put their money and startups do business.

Taxpayer Outflows

According to the latest IRS data, Los Angeles County led the nation in taxpayer losses, with a net 17,496 tax filers leaving for other states. Those departing taxpayers took nearly $1.9 billion in income with them. Other California counties also saw significant outflows, including Orange County, San Diego County, Riverside County, and San Bernardino County.

Original reporting: Fox News (HLL/CB) — read the source article.