A proposed California wealth tax includes a retrospective implementation clause that applies to the start of 2026.
Posted by The Dan Bongino Show, Checked
- Sources
- 5 support
- Said
- 1 time·
- Confidence
- 90%
The Dan Bongino ShowOct 16, 2026
Multiple sources, including The Atlantic, Thomson Reuters, Tax Foundation, Grant Thornton and NPR, state that Proposition 40's one-time wealth tax uses a January 1, 2026 residency snapshot, so it reaches billionaires who lived in California at the start of 2026 and is retroactive to that date.
This claim is about the present, so it is judged as of the day it was checked.
What was said
… This is a terrible idea, even if you're a hardcore leftist, because it won't raise any money. It will actually cost you money. Well, and that we are—it's not just a theory. That's already happened, because this insane proposal has included in it a retrospective implementation clause, which means that if it is voted through on the ballot in that now and is implemented at the end of the year, which is when it goes into practice, it actually goes back to the start of 2026. So people knew that at the end of last year. As a result, you've had, by some estimate, a trillion dollars of wealth has already left California as the targets of this tax moved to Florida, to Texas, to Tennessee. …
The Dan Bongino Show · · from the transcriptPost →What we found
Supports. The Atlantic reports the policy 'would apply retroactively to anyone who lived in the state at the start of 2026.'[1]
Supports. Thomson Reuters states the tax would apply to those who were California residents as of January 1, 2026, with net worth measured at a December 31, 2026 valuation date.[2]
Supports. Tax Foundation describes a one-time 5% tax on billionaires who were California residents as of January 1, 2026, noting the residency snapshot precedes adoption by more than ten months.[3]
Supports. Grant Thornton notes that although the tax is limited to residents, the residency determination is made as of January 1, 2026.[4]
Supports. NPR reports the tax 'would apply retroactively to any billionaire who was a resident of California on January 1, 2026.'[5]
Sources
5 sources: 1 tier 2, 4 not rated
- 1A Cynical Ploy to Block California’s Wealth Taxtheatlantic.com · tier 2 · cited for: supports
- 2Planning for a California wealth tax - Thomson Reuterstax.thomsonreuters.com · not rated · cited for: supports
- 32026 California Billionaire Tax Act: Details & Analysistaxfoundation.org · not rated · cited for: supports
- 4California billionaire tax highlights key SALT issues | Grant Thorntongrantthornton.com · not rated · cited for: supports
- 5Two economists studied California's billionaire tax. They reached wildly different conclusionsstlpr.org · not rated · cited for: supports
Where this claim was made
Said in 1 published post