Kiley Bill Aims to Halt Billionaire Exodus from California Amid Wealth Tax Debate
WASHINGTON — As California inches closer to a potential November ballot measure that would impose a tax on the state’s wealthiest residents, Republican Rep. Kevin Kiley is spearheading an effort to prevent a further outflow of high-net-worth individuals. Kiley plans to introduce the “Keep Jobs in California Act of 2026” on Friday, a bill designed to block states from retroactively taxing former residents.
Wealth Tax and the Exodus of Billionaires
The proposed “2026 Billionaire Tax Act” would levy a 5% tax on the assets of individuals with a net worth exceeding $1 billion who resided in California as of January 1, 2026. This potential tax has already prompted several prominent billionaires to consider or announce their departure from the state, including Meta CEO Mark Zuckerberg, Google co-founders Larry Page and Sergey Brin, Oracle CEO Larry Ellison, and PayPal co-founder Peter Thiel.
Kiley’s Bill: Protecting Former Residents
Kiley’s legislation would specifically prohibit any state from imposing a retroactive tax on the assets of individuals who no longer reside within its borders. “California’s proposed wealth tax is an unprecedented attempt to chase down people who have already left as a result of the state’s poor policies,” Kiley stated. He argues that such a practice is “fundamentally unfair.”
Political Context and Opposition
The debate over the wealth tax has become increasingly contentious, dividing Democrats and placing Los Angeles at the center of a broader political struggle. Senator Bernie Sanders (I-Vt.) is scheduled to hold a rally in support of the wealth tax.
However, opposition extends beyond Republicans. California Governor Gavin Newsom has expressed concerns that a state-by-state approach to taxing the wealthy could hinder innovation and entrepreneurship. Several billionaires are actively funding efforts to defeat the ballot measure. Sergey Brin has donated $20 million, and Peter Thiel has also contributed significantly to a committee opposing the tax.
Kiley’s Reelection Bid
Kiley’s push against the wealth tax comes as he faces a challenging reelection campaign. California’s redrawn congressional maps have significantly altered his district, creating uncertainty about his political future.
The Stakes for California
Supporters of the wealth tax argue it is a necessary measure to address economic uncertainty and provide funding for essential services, particularly healthcare. They contend that asking billionaires to contribute a compact percentage of their wealth could prevent cuts to healthcare funding and protect access to medical care for millions of Californians.
Kiley, however, warns that the tax could destabilize the state’s economy, given its reliance on high earners for tax revenue. He argues that California’s tax structure is “incredibly volatile,” with the top 1% of earners accounting for 50% of the state’s tax revenue.