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California's billionaire tax push runs into a taxpayer exodus already in progress

8/17/2026

California is heading toward a November ballot vote on a one-time 5% wealth tax targeting residents worth more than $1 billion, even as IRS data show the state is already losing taxpayers and income at significant scale.

Los Angeles County alone recorded a net outflow of 17,496 tax filers who took nearly $1.9 billion in income with them.

Investor Mark Cuban has warned that if the measure passes, it would change where he routes startup capital, a claim that complicates the revenue case supporters are making.

The outflow before the vote The IRS data, compiled from federal tax returns, show the losses extend well beyond Los Angeles. Orange County recorded a net loss of 11,618 filers.