The rich hate California's billionaire tax. That's why we need it. | Opinion

“Tax the rich” is more than just a quippy slogan – it’s a promise that the working class will ensure that the richest people in the United States pay their dues and help improve life for the rest of us.

In some parts of the country, it’s being put into practice.

The Service Employees International Union-United Healthcare Workers West has proposed a 5% tax on assets in California for people who are worth at least $1.1 billion. On April 26, union leaders announced they had enough signatures to get the initiative on the ballot – meaning that, come November, Californians could decide to tax about 200 of the wealthiest people in their state to pay for health care and education.

You know, things that improve life for everyone there.

As you would expect, billionaires aren't very happy about being taxed

Yet, as you might expect, billionaires in the state are losing their minds at the mere thought of having to pay a one-time fee for a lifetime of hoarding wealth.

“I fled socialism with my family in 1979 and know the devastating, oppressive society it created in the Soviet Union,” Sergey Brin, one of the cofounders of Google, said in a statement to The New York Times. “I don’t want California to end up in the same place.”

Brin was so disgusted with the tax that he moved to the Nevada side of Lake Tahoe to get out of paying it. Yet the concern that every single billionaire in California will flee the state is ridiculous, and the ones who do clearly don’t care about their neighbors.

This tax – which again, would only apply to people making at least $1.1 billion, and would only happen once – is undoubtedly going to make life better for people in the state who have been affected by President Donald Trump’s slashing of the health care budget. That, in turn, makes life better for everyone in the state, including the people who have made these billionaires their money – in turn, making things better for the wealthy elite.

The billionaires, who are in part responsible for the high cost of living in California, should be proud of the fact that they can improve the social safety net there. Yet they’d rather complain about having to shell out more money to improve the quality of life for everyone where they live.

Massachusetts, New York are already taxing the rich

The idea that the richest people in the United States should pay more in taxes is becoming increasingly popular amongst voters. In 2025, Pew Research Center found that 63% of Americans believed that there should be higher taxes on corporations and high-income households, with 34% believing that their taxes should be raised “a lot.”

Some places are following through on this popular sentiment, pleasing voters and infuriating the people who can afford to give away some of their wealth.

Starting in 2023, Massachusetts has had a "millionaires tax," charging residents who make more than $1 million an additional 4% on their taxable income.

In its first year, this led to an additional $2 billion in tax revenue for Massachusetts. That money is being used to help provide free school lunches to every child in their public school system. How could anyone be against that?

In New York City, a tax proposed by Mayor Zohran Mamdani on second homes worth $5 million or more is set to help alleviate some of the city’s budget shortfall. If implemented, this tax could provide New York with an additional $500 million annually.

That’s an additional $500 million that could be used to implement some of Mamdani’s commonsense ideas, like universal childcare and a free bus system.

It’s not like any of these taxes will actually put a dent in the pockets of the wealthiest people in the nation. They’re still going to be much wealthier than the rest of us, yet they will be making lives better for the people in their respective states in the process. Moving away is cowardly – if these people really care about where they live, they’ll rejoice at the idea of making things better for everyone.

It's also a bit hypocritical since being in these states and cities helped the rich become rich.

Democratic candidates for California governor disagree on billionaire tax

Not every billionaire is complaining. Tom Steyer, a 2020 Democratic presidential candidate who’s now running for governor of California, put out a statement in support of the tax and other reforms that would lead billionaires and corporations to pay more, saying, “I’m always going to come down on the side of supporting working families.”

Gavin Newsom, the current governor and notably not a billionaire, is less enthusiastic – probably because he knows the people who hold the power to make him president through advertisements and super PACs are unhappy with the tax.

“This will be defeated – there’s no question in my mind,” Newsom told The Times.

I get that the heir apparent to the Democratic throne has to appease all of the people in his party, including the uber wealthy. Yet the answer is spineless, putting the comfort of a few over the health care of thousands.

Newsom also doesn’t seem to have the pulse of the people. According to a poll from University of California Berkeley's Citrin Center for Public Opinion Research/Politico, half of Californians would vote for the ballot initiative if the election were held today. That doesn’t exactly scream unquestionable defeat.

We live in the richest country in the world, yet we have higher wealth inequality than most other developed countries. Asking the people who own multiple homes and private jets to pay a little bit more to make sure everyone gets by isn't crazy – it's necessary.

California’s proposed billionaire tax isn’t perfect. It would only apply once, and the funds would be separate from the state's regular tax revenue. Yet the premise of it – the taxing of the state’s wealthiest residents to make up for gaps in health care coverage for the people hit hardest by Trump’s cruel agenda – is a good one.

While I still think billionaires should have to pay their fair share consistently, instead of just once in their lifetimes, California’s tax proposal is a good start to correcting generations of wealth inequality in the state.

Follow USA TODAY columnist Sara Pequeño on Bluesky: @sarapequeno.bsky.social