The post California faces backlash for proposed 5% wealth tax  appeared on BitcoinEthereumNews.com.

A 5% tax is proposed on net wealth above $1 billion with the purpose of funding the healthcare system in California.   The billionaires may pay the tax either in one instalment or over five years with interest payments.  Crypto officials have reacted to the recent 5% tax proposed on billionaires’ wealth in California and stated that it would lead to a large-scale exit of money from the country and withdrawal of entrepreneurs. They further argued that the proposed tax would be wasted anyway.  According to the 2026 Billionaire Tax Act, a 5% tax is proposed on net wealth above $1 billion with the purpose of funding the healthcare system and state assistance programme, as mentioned by the SEIU United Healthcare Workers West Union.  As the financial obligations of the tax are calculated, in part, based on the potential profits from assets they hold but have not sold yet, some defined taxpayers may need to sell stocks or parts of their businesses to raise funds to pay the tax. The billionaires may pay the tax either in one instalment or over five years with interest payments.  Some prominent names of the crypto industry, such as the chief executive officer of Bitwise, Hunter Horsley, argue that this initiative will lead to billionaires leaving the state, having an overall negative effect.  On 28th December Powell tweeted, ‘I assure you this will be the final straw and Billionaire will have to take them all of their spending, hobbies, philanthropy and jobs.’ He also asked to solve the waste/fraud issue.  The Defense of The Bill  US Representative Ro Khanna has defended the bill, saying that it will help in funding better childcare, housing and education, which will eventually aid American innovation. Nic Carter, the founding partner of Castle Island Ventures, mentioned that he generally likes…

---

Filed under: News - @ December 29, 2025 9:22 am