WASHINGTON — Representative Kevin Kiley (R-CA) plans to introduce the “Keep Jobs in California Act of 2026” on Friday, legislation aimed at preventing states from retroactively taxing individuals who have moved out of state. The bill is a direct response to a proposed wealth tax in California that is prompting some of the state’s wealthiest residents to consider leaving, and is adding another layer to the ongoing debate over how to tax the ultra-rich.
Kiley’s office stated the bill would prohibit “any state from imposing a retroactive tax on the assets of individuals who no longer reside in the state.” He argues that imposing such a tax is “fundamentally unfair,” and that California’s proposed tax is an “unprecedented attempt to chase down people who have already left.”
The proposed “2026 Billionaire Tax Act,” which may appear on the November ballot, would impose a 5% tax on the net worth of individuals with over $1 billion in assets who resided in California as of January 1, 2026. Backers of the measure, including the Service Employees International Union-United Healthcare Workers West, intend to use the revenue to offset cuts to federal healthcare funding for low- and middle-income residents.
Several high-profile billionaires have reportedly begun taking steps to leave California in anticipation of the tax. Meta CEO Mark Zuckerberg, Google co-founders Larry Page and Sergey Brin, Oracle CEO Larry Ellison, and PayPal co-founder Peter Thiel have all announced plans to relocate, according to reports. Sergey Brin has donated $20 million to a political drive to prevent the wealth tax from becoming law, according to the Fresh York Times.
Kiley, who faces a challenging re-election campaign due to California’s redrawn congressional maps, warned that the wealth tax could destabilize the state’s economy. He noted that the top 1% of earners account for 50% of California’s tax revenue, making the state’s tax structure “incredibly volatile.”
However, supporters of the tax argue it is a necessary measure to address economic uncertainty and fund vital social programs. Senator Bernie Sanders (I-VT) is scheduled to hold a rally in Los Angeles on Wednesday night in support of the wealth tax, arguing it would “provide the necessary funding to prevent more than 3 million working-class Californians from losing the healthcare they currently have.”
California Governor Gavin Newsom has expressed reservations about the wealth tax, warning that a state-by-state approach could hinder innovation and entrepreneurship. The debate over the tax is expected to continue in the coming months, with both sides preparing for a potentially costly battle on the November ballot.
