Bernie Sanders energized a crowd at Los Angeles’ historic Wiltern Theatre on Wednesday to campaign for a new tax initiative. The proposed ballot measure seeks to implement a one-time 5% tax on the total net worth of every billionaire residing in California.
Sanders told the crowd:
“These billionaires are going to learn that we are still living in a democratic society where the people have the power,”
It was a fiery speech from a senator who never met a tax he didn’t like. And while he was giving it, the billionaires he was talking about were busy calling their tax lawyers and real estate agents in Nevada, Florida, and Texas.
What the Billionaire Tax Actually Does
Here’s the plan Sanders is backing. A union-backed ballot initiative called the 2026 Billionaire Tax Act would require any California resident worth more than $1 billion to pay 5% of their total net worth.
Not their income: their wealth. Everything they own. Stocks, businesses, investments.
If you’re worth $10 billion, you owe $500 million. You can spread it over five years. But you owe it.
The measure needs about 875,000 signatures to land on the November 2026 ballot, and supporters are racing to collect them. If it makes the ballot, a simple majority passes it.
Here’s the kicker: it applies retroactively to anyone living in California as of January 1, 2026. Meaning many of these billionaires already owe it — even if they’ve since moved.
Supporters say it could raise roughly $100 billion, with 90% going to healthcare and 10% to education. Backers like Sanders frame it as a fairness issue.
Sanders posted online:
“While US billionaires became $1.5 trillion richer last year, the average worker in America has just $955 in retirement savings.”
That’s the pitch.
The Exodus Is Already Happening
Here’s what’s also happening: people are leaving. Not just talking about it. Actually leaving.
At least six billionaires departed California before the new year, according to Bloomberg. Tax attorney David Lesperance told the Washington Post that four of his clients, worth $600 billion collectively, had already set relocation plans in motion.
“Every one of my clients who ran the numbers came back immediately and said get me the hell out of here,” he said.
“This is now a no-brainer.”
The names leaving or pulling back are a who’s who of Silicon Valley.
- Larry Page, the co-founder of Google and one of the world’s richest men, began restructuring business entities out of California.
- His Google co-founder Sergey Brin moved 15 California LLCs out of state — seven of them converted to Nevada entities.
- Oracle founder Larry Ellison quietly sold his Pacific Heights mansion on Billionaire’s Row for $45 million in an off-market deal.
- Peter Thiel, the venture capitalist and Palantir founder, has been making moves to exit as well.
- Mark Zuckerberg and his wife are reportedly buying a $150 to $200 million waterfront mansion in Miami’s exclusive “Billionaire Bunker,” with neighbors saying he plans to move in by April.
- And venture capitalist Ben Horowitz already lives in Las Vegas. He told a podcast the wealth tax was “the best strategy I’ve seen” for finally breaking people loose from California.
Meanwhile, real estate agent Darin Marques, who owns Virtue Real Estate in Henderson, calls what’s happening a “full-scale migration of wealth.” His firm is seeing a surge from both California and Washington state residents in the last 90 days alone.
Nevada Is Benefiting — But It’s Not Just About Houses
Yes, Las Vegas home prices at $465,000 look like a bargain next to Los Angeles at over $1 million. But this story is bigger than real estate. It’s about entire fortunes, entire companies, and entire tax bases moving across state lines.
When Sergey Brin moves his LLCs to Nevada, Nevada gets those business interests. When a billionaire buys a home here, pays property taxes here, hires staff here, and donates to charities here — that’s wealth circulating in our communities.
Nevada has no state income tax, no wealth tax, and a government that has largely kept its hands out of people’s pockets. That’s not an accident. It’s a policy choice, and it’s paying off.
Even Some Democrats Think This Is a Bad Idea
Interestingly, even California Gov. Gavin Newsom opposes the measure. He’s warned it will drive high earners out of the state. California relies on its top earners to pay roughly two-thirds of its income tax revenue. Lose even a small slice of that group, and the budget math gets ugly fast — and California’s budget is already looking at a projected $50 to $70 billion deficit this year.
Republican Congressman Kevin Kiley announced plans to introduce a bill in Congress that would prohibit any state from levying a retroactive tax on people who no longer live there.
Opposition money is already flowing. A group called Golden State Promise reportedly received $10 million in early donations, including $5 million from Ripple co-founder Chris Larsen, to fight the measure.
What Conservatives Should Do
Nevada is winning right now because Sacramento keeps overreaching. Our job is to keep it that way. That means electing legislators who will hold the line on taxes, keep spending in check, and resist any temptation to “do what California does.”
If you want to support Nevada’s competitive advantage, pay attention to anyone running for office in this state who talks about new revenue sources, expanded government programs, or wealth redistribution. That’s the road California took — and California is now watching its most productive citizens pack their bags.
The lesson here is simple. When you punish success, success moves next door.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
