Why some billionaires are racing to leave California — and why it may be too late

Summary

CNBC's Robert Frank reports on a proposed California ballot measure that would impose a one-time 5% wealth tax on residents worth at least $1 billion. The measure could raise roughly $100 billion from about 200 billionaires to help offset federal cuts to health care and would be retroactive to Jan. 1, 2026. The report focuses on billionaire migration, strict California residency rules, and likely legal challenges rather than a specific investable trade.

• California voters may decide in November on a 5% wealth tax for residents worth at least $1 billion.
• The measure would target about 200 billionaires and raise roughly $100 billion.
• Proponents say the revenue would help offset federal cuts to health care.
• The tax would be retroactive to Jan. 1, 2026, to deter billionaires from leaving before the vote.
• The deadline to move and avoid the tax has already passed under the retroactive structure.
• California requires extensive residency changes, including doctors, bank accounts, cars, pets, and country club memberships.
• Legal challenges to the retroactive tax are likely, and billionaires can afford litigation.
• No specific investment security or asset is named as a trade.