WASHINGTON — Representative Kevin Kiley (R-Rocklin) announced plans Friday to introduce the “Keep Jobs in California Act of 2026,” federal legislation aimed at preventing states from retroactively taxing former residents. The move comes as California weighs a proposed wealth tax targeting its wealthiest citizens, a measure that has sparked a national debate and drawn opposition from prominent figures and political organizations.
Kiley, who is facing a competitive reelection bid due to California’s redrawn congressional maps, framed the bill as a response to concerns that California’s proposed wealth tax will incentivize high-net-worth individuals to leave the state, whereas still being subjected to taxation on assets they no longer hold within its borders. He specifically cited reports indicating that Meta CEO Mark Zuckerberg, along with Google co-founders Larry Page and Sergey Brin, are considering relocating in anticipation of the tax’s potential enactment.
“California’s proposed wealth tax is an unprecedented attempt to chase down people who have already left as a result of the state’s poor policies,” Kiley said in a statement. “Many of our state’s leading job creators are leaving preemptively.” He further argued that imposing taxes on former residents is “fundamentally unfair,” particularly given California’s already high tax burden, which he described as the highest income, gas, and overall tax burden in the nation.
The proposed wealth tax, known as the Billionaire Tax Act, is being spearheaded by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW). Backers aim to qualify the measure for the November ballot, intending to levy a one-time 5% tax on the net worth of California’s 200-plus billionaires. The revenue generated would be earmarked to backfill cuts to federal healthcare funding impacting middle and low-income residents, according to proponents.
The debate has attracted national attention, with Senator Bernie Sanders (I-Vt.) planning a rally in Los Angeles on Wednesday evening to voice his support for the tax. Sanders has characterized the measure as a necessary step to protect healthcare access for millions of Californians, arguing that billionaires should contribute more to ensure continued access to vital medical services. “It should be common sense that the billionaires pay just slightly more so that entire communities can preserve access to life-saving medical care,” Sanders stated earlier this month.
Yet, the wealth tax faces opposition from within California’s Democratic party. Governor Gavin Newsom, who is reportedly considering a presidential run in 2028, has expressed reservations about the measure, warning that a state-by-state approach to taxing the wealthy could hinder innovation, and entrepreneurship.
Opposition to the tax is also being funded by some of the world’s wealthiest individuals. Sergey Brin has donated $20 million to a political committee working to defeat the ballot measure, according to a disclosure reviewed by the New York Times. Peter Thiel, co-founder of PayPal and chairman of Palantir, has also contributed millions to the effort, the New York Times reported.
Kiley expressed concerns that the wealth tax could destabilize California’s economy, arguing that the state’s tax structure is “incredibly volatile” and heavily reliant on the top 1% of earners, who account for 50% of the state’s tax revenue. The fate of Kiley’s “Keep Jobs in California Act” remains uncertain, as does his own political future. California’s voter-approved Proposition 50 has significantly altered the state’s congressional districts, and Kiley has yet to announce which district he will contest for reelection.
