Legendary and liberal director Steven Spielberg has moved from California to Manhattan as some of the state's wealthiest residents weigh leaving the Golden State ahead of a controversial wealth tax targeting billionaires that voters are set to consider.
The proposed 2026 Billionaire Tax Act, sponsored by the healthcare union Service Employees International Union-United Healthcare Workers West, would impose a one-time levy on California residents worth more than $1 billion, taxing the equivalent of 5% of their assets.
Supporters say it could generate about $100 billion in revenue for the state.
Spielberg spokeswoman Terry Press insisted that the move is not related to the tax, but had been "both long-planned and driven purely by his and [wife] Kate Capshaw's desire to be closer to their New York-based children and grandchildren," The New York Post reported Friday.
Press did not respond to questions about Spielberg's views on the proposed tax.
Under the proposal, at least 90% of the money would go toward public healthcare services, while the remainder would fund administration of the wealth tax, education, and food assistance.
A similar 1.5% tax on billionaires failed in the Legislature last year, with Gov. Gavin Newsom, a Democrat, opposing the measure.
If the new proposal gathers enough signatures to reach the state ballot in November and wins approval, it would apply retroactively to anyone who lived in California as of Jan. 1, 2026.
Billionaires would have five years to pay the one-time tax. The only way to avoid the levy would be to leave California before Dec. 31, 2025.
The debate comes as several tech leaders have been reported to be exploring homes outside California, including Google co-founders Sergey Brin and Larry Page in Miami and Meta founder Mark Zuckerberg in Florida. None have publicly said a possible move is being driven by the ballot measure.
Brin has funded an organized campaign against the proposed wealth tax.
Venture capitalists Peter Thiel and David Sacks have also been cited in reports about wealthy residents leaving the state, though neither has publicly cited the proposed tax as the reason.
Supporters of the measure say it would raise tens of billions of dollars to address the state's healthcare shortfalls.
Opponents, including Newsom, say it could push wealthy residents to leave California and shrink the tax base.
Sen. Bernie Sanders, I-Vt., has campaigned for the proposal, holding a rally on Wednesday in Los Angeles.
"Starting right here in California, these billionaires are going to learn we are still living in a democratic society where the people have the power," Sanders told the crowd.
Sanders also condemned the conduct of the ultra-wealthy in sweeping terms.
"Never before in American history have we seen the kind of greed, arrogance, and moral turpitude," he said.
California Republicans, meanwhile, have warned the tax could pave the way for broader levies if top earners leave and state revenue declines.
"So, they are saying it's just for billionaires," said Rep. Kevin Kiley, R-Calif., who has introduced a bill in Congress to prohibit retroactive taxes.
"But of course it starts with billionaires, and then they continue to lower the threshold, ensnaring more and more people," Kiley said.
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