The American state of California is deliberating on a proposed act that would levy a five percent wealth tax on individuals with net worth of $1 billion. The bill, that is drawing criticism and consequence warnings from crypto billionaires, seeks the funneling of the collected tax into California’s health care system and state assistance initiatives.
Bitwise CEO Hunter Horsley posted a strongly worded opposition on the proposed tax on X. Over the weekend Horsley said, “Many who’ve made this state great are quietly discussing leaving or have decided to leave in the next 12 months.”
I say this with no joy as a California resident:
Many who’ve made this state great are quietly discussing leaving or have decided to leave in the next 12 months.
More generally, one of the fascinating developments of this decade is people voting their views not with the… https://t.co/bTlBnsYdnY— Hunter Horsley (@HHorsley) December 27, 2025
The SEIU United Healthcare Workers West union is strongly backing this 2026 Billionaire Tax proposal. Touted among the largest such unions in California, the body has claimed that the state houses about 200 billionaires who collectively hold $2 trillion.
“We’re calling on California’s billionaires to step up and pay a one-time, emergency five percent tax to prevent the collapse of California healthcare and help fund California public K-14 education and state food assistance programs,” the SEIU-UHW has said in its proposal pitch.
The tax is intended to be imposed on unrealized gains or the potential profits of stock or real estate investments that have not been sold yet.
David Sacks, the White House Crypto Czar appointed by U.S. President Donald Trump has also argued against the Billionaire Tax proposal.
“The Billionaire Tax Act is a five percent across-the-board confiscation of net worth. It applies even if one has already realized and paid taxes on the entire amount,” he said on X.
Kraken co-founder Jesse Powell said, “a five percent theft of unrealized gains and assets taxes were already paid on is about the most retarded thing I’ve ever heard,Billionaires will take with them all of their spending, hobbies, philanthropy and jobs. Solve the waste/fraud issue,” calling the tax proposal “retarded”.
The SEIU-UHW had submitted the paperwork proposing the tax in October this year. The aim is to place it on the November 2026 ballot.
“Signature collection will begin soon, so that voters can have the chance to decide on this measure during the general election in the Fall of 2026,” the SEIU-UHW said.