Senator Bernie Sanders has called for stronger public support for a proposed California tax on billionaires, arguing that the wealthiest Americans should contribute more as millions struggle with rising living costs. Speaking at a rally in Los Angeles, Sanders criticised tech billionaires, corporate power, and income inequality while backing a proposal that has already prompted some wealthy tech leaders like Google founder Sergey Brin and Larry Page, Oracle’s Larry Ellison and others to move out of California. The Vermont senator said the measure was necessary to fund essential services such as health care, education, and food assistance, even as critics warn it could drive more billionaires away from the state.“At a time when the very rich are becoming phenomenally richer, when the very rich have been given a massive tax break by Donald Trump, when millions of people in this state are struggling to be able to afford health care, maybe billionaires should start paying their fair share of taxes,” Sanders said while addressing a crowd at the Wiltern Theater.

Billionaire tax sparks political divide in California

The proposed initiative would introduce a one-time 5% tax on the net worth of California residents with assets above $1 billion. Supporters say the tax would affect roughly 200 people and raise tens of billions of dollars. The plan has been backed by the Service Employees International Union–United Healthcare Workers West, which says the money is needed to offset federal health care cuts.During the rally, Sanders named several well-known tech billionaires with ties to California, including Elon Musk, Mark Zuckerberg, Larry Ellison, and Sergey Brin, which prompted boos from the audience.California Governor Gavin Newsom has opposed the proposal, warning it could hurt innovation and reduce long-term tax revenue if more wealthy residents leave the state. Business groups have also spoken out against the measure, saying it could damage the economy.Despite the opposition, labour leaders and supporters at the rally said the tax was needed to reduce inequality and support working families. The proposal may go before voters later this year if enough signatures are collected.

Tech billionaire exits linked to California’s proposed wealth tax

The proposed billionaire tax has already been linked to the departure of several high-profile tech leaders from California. Over the past few years, a number of Silicon Valley founders and executives have moved their primary residences out of the state, citing rising taxes and regulatory uncertainty.Google co-founder Larry Page shifted his residence to Florida, while fellow Google co-founder Sergey Brin has also left California. Oracle founder Larry Ellison has also moved out of the Silicon Valley, while PayPal co-founder Peter Thiel relocated to Florida. Recent reports said that Meta CEO Mark Zuckerberg and his wife Priscilia Chan have also purchased a home in South Florida, joining the California billionaires leaving the state.