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flag California proposes a 5% one-time wealth tax on billionaires to fund healthcare, prompting threats to leave but unlikely mass exodus.

flag California is exploring a one-time 5% wealth tax on individuals worth over $1 billion, aiming to raise $100 billion for healthcare, sparking concerns among billionaires like Peter Thiel and Larry Page, who are considering reducing ties to the state. flag The proposed 2026 Billionaire Tax Act, backed by labor unions and not supported by Governor Newsom, faces legal and political hurdles but reflects growing national debate over wealth inequality. flag While some wealthy figures threaten to leave, experts doubt mass exodus will occur, citing evidence that high taxes don’t necessarily drive wealth away, and emphasizing that innovation thrives on public investment and infrastructure rather than tax avoidance.

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