The Service Employees International Union recently filed an initiative with the California Attorney General’s Office called the 2026 Billionaire Tax Act. It is possible that the SEIU could obtain a sufficient number of signatures to place the initiative on the November 2026 ballot. Apparently, it is uncertain whether such a ballot measure would require only a simple majority to pass or whether a two-thirds majority would be needed.

According to the California Legislature’s Legislative Analyst’s Office, “Billionaires living in California on Jan. 1, 2026, would have to pay a one-time state tax equal to 5% of their net worth. The tax would be due in 2027. Taxpayers would have the option to spread the payments over five years, but would have to pay more to do so. Real estate, pensions, and retirement accounts would be excluded from the tax.”

As a CPA who has practiced for over half a century, my view is that this measure is not only bad tax policy, but it also would result in significant administrative burdens to collect.

Furthermore, many tax commentators believe the measure would be subject to constitutional challenges.

From a tax policy perspective, this would clearly encourage the wealthiest Californians to........

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