Larry Page, Elon Musk, and Larry Ellison (from left) in conversation. These are entrepreneurs who left California to avoid wealth taxes. [AI-generated image] 

Controversy over a proposed wealth tax is heating up in California.

A bill that would impose a one-time 5% tax on individuals with assets exceeding $1 billion has been officially added to the November ballot in California. 

While left-wing groups and labor unions argue that the tax is essential for funding healthcare and education, conservatives have opposed it, warning that it will trigger a mass exodus of billionaires and innovative companies.

Meanwhile, Governor Gavin Newsom, a leading Democratic presidential hopeful, stated his opposition on the 26th (local time) via the publishing platform Substack and X (formerly Twitter), saying, "Last night, it became clear that a wealth tax will be on the California ballot in November. I oppose it."

Newsom argued, "Many entrepreneurs have already left California, including Elon Musk (Tesla), Larry Page (Google), and Larry Ellison (Oracle)," adding that "the wealthy move to states with the lowest taxes."

Even Democratic presidential contender Gavin Newsom has come out against the 'wealth tax.' [Getty Images = Los Angeles Times] 

Socialist Senator Bernie Sanders (Independent, Vermont) supporting the wealth tax bill. [Getty Images = Fox News]

Indeed, a significant number of California billionaires have already relocated to states like Texas or Florida.

Although Newsom agrees with the sentiment that the wealthy should pay more, he emphasized that this should not be implemented on a state-by-state basis. Instead, he believes the federal government should overhaul the fundamentally broken system—including federal tax codes, corporate laws, and inheritance laws—to create a "new social contract."

In his post on X, Newsom noted, "The system is fundamentally broken. Federal tax codes, corporate laws, and inheritance laws were written for different Americans. We need an economic reset."

The so-called "California Billionaire Tax Act," which will officially appear on the November ballot, would impose a one-time emergency 5% tax on California residents with assets exceeding $1 billion (approximately 1.5346 trillion KRW).

The group behind the initiative to add this bill to the ballot is 'Billionaire Tax Now,' which is sponsored by the United Healthcare Workers West, an organization leading the tax campaign.

Socialist Senator Bernie Sanders (Independent, Vermont) supported the bill, calling it "a rational and necessary measure in an era of unprecedented wealth concentration and income inequality."

Newsom is not alone in opposing the billionaire tax. Earlier this year, Silicon Valley tech entrepreneur Allison Huynh predicted that "the billionaire exodus is just the beginning," warning that "people investing in new ideas and infrastructure—in AI, healthcare, technology, and robotics—will continue to flee."

Huynh quipped, "If this tax increase passes, you'll be paying $50 for a lousy bowl of dumplings."