It’s Time for Corporations and Billionaires Like Me to Pay More Taxes.

My thoughts on the one-time, 5% wealth tax on billionaires that California is currently considering.

California now has more billionaires and ultra-wealthy individuals than at any point in history, and is home to five of the 10 most valuable companies in the world.

At the same time, the people who built this state and keep it running are being priced out. Rents and home prices are among the highest in the nation. Working families are stretched thin. Our kids are getting shortchanged, with California ranking 31st among states in education spending. Nearly 7 million Californians live in poverty, including one in five children.

This did not happen by accident. It is the result of bad policy, fueled by corporate-funded ballot measures, lobbying, and political contributions.

Private wealth also does not happen in a vacuum. I know from experience. It is built on public investments—on roads and ports, public schools and universities, scientific research, and a workforce educated at public expense. For generations, California has led the nation in those kinds of investments, and in creating the conditions that allow new industries and technologies to take root and thrive.

Yet too many of the wealthiest corporations and individuals in California are focused on shielding their fortunes and denying their debt to the society that made their success possible.

These corporations have high-priced lawyers who spend 24 hours a day, 365 days a year figuring out how to game the system to avoid paying their fair share. Some of the wealthiest Americans pay effective tax rates as low as 4 percent.

Ultimately, this imbalance must be addressed at the federal level. But until Washington acts, California has bills to pay.

I’ve always believed that billionaires like myself have a deep obligation to their fellow citizens, the ones who built the system and the ones who make it run today. That is why I have never minded paying taxes myself, including at much higher levels.

California is currently considering a one-time, 5% wealth tax on billionaires. It has proved controversial, to say the least.

I have looked at this proposal, and I have some real concerns about how it’s been designed, and whether it works long-term. As drafted, the billionaire tax is a temporary fix to a permanent, structural problem, trying to backfill the damage caused by the Trump administration’s disastrous cuts to Medi-Cal, the healthcare system for more than 1 in 3 Californians.

Let me be clear though: If there’s an opportunity to tax wealthy people to fund health care and education, I’d vote for it all day long. At the end of the day, I’m always going to come down on the side of supporting working families, and if that includes making billionaires like me pay more taxes, then so be it.

But I think we can go farther, do better, and ultimately raise more revenue from California’s giant growth machine. We need a solution that is durable and fair, and allows that ecosystem and its members to thrive.

California must get this right. We need to build a tax system that actually benefits the working people of California, and sets us on a long-term track for shared success and shared prosperity—where quality healthcare is accessible, and public schools are back in the top ten in the country in both quality and funding levels.

Which is why only looking at taxing wealthy individuals makes us miss the fairest and most durable solutions. For decades, some of the world’s richest companies have exploited state tax loopholes to avoid paying their fair share on massive property holdings, as well as profits that they shift overseas. This has drained billions from schools, health care, and local services. I have worked with California voters to fight the oil companies and big tobacco, and close corporate tax loopholes—and we’ve won every time. I am committed to leading another fight to close tax loopholes and stop corporations from offloading their costs onto the backs of California’s working families.

Together, closing these two corporate tax loopholes alone will generate an estimated $15 to $20 billion—not one time, but every single year—for education, housing, and other key programs Californians rely on. It’s also harder for entire corporations to pack up and leave the state than it is for individuals—especially because of the incredible wealth of talent you can only find here in California. And of course, property can’t leave the state by definition.

Look, I love the fact that we have the most innovative state, that we have the new ideas that have created the most successful, most profitable companies in the world. But if you’re going to come here and take the opportunity to build a world-changing company and make a fortune, you also have a responsibility to pay your fair share to the state. It’s a two-way street.

I am committed to working with leaders across California to build a durable, multi-year strategy to ensure the wealthy and powerful pay their fair share—directly or indirectly. The details matter. The language matters. And I will ensure California voters have a real opportunity to weigh in. But the core truth is unavoidable: a tiny number of people and companies have accumulated extraordinary wealth while millions of Californians struggle to get by. This has to change.