Congressman Kevin Kiley of Rocklin has officially introduced federal legislation to block California from taxing former residents who leave the state.
The Keep Jobs in California Act targets a proposed state wealth tax that would impose a one-time, five percent tax on residents with assets over a billion dollars. The measure is backed by a healthcare workers union and would be retroactive to January 1st, 2026.
"Because of this threat, you see that a number of high net worth people have already left California because they simply can't take the risk. And this includes most recently, Steven Spielberg and Mark Zuckerberg. By some estimates, individuals worth a combined one trillion dollars have already left California."
Supporters of the wealth tax say the revenue is needed to offset deep federal cuts to healthcare programs. Governor Gavin Newsom and state financial analysts have warned the measure could backfire if high earners leave the state, taking their tax revenue with them.