As California lawmakers brace for a major budget deficit, state lawmakers in a key committee this week are expected to consider a new tax on the richest of the rich.Lawmakers in the State Assembly’s Revenue and Taxation Committee are dusting off Democratic Assemblyman Alex Lee’s Assembly Bill 259, which went nowhere after it was first introduced in 2023. The measure would impose a 1.5% tax on the assets of Californians with a worldwide net worth of $1 billion as soon as 2024, and a 1% tax on those with a net worth of $50 million by 2026. The hearing is set for Wednesday afternoon. “I’m delighted after so many times of introducing the wealth tax, it’s finally getting its first hearing,” Lee told KCRA 3 on Monday. “It would be the fiscally responsible thing to look at the people who effectively pay little-to-no taxes than ask again for the working class or middle-class people to shoulder cuts or shoulder new taxes.” The new measure takes aim specifically at the assets of mega-millionaires and billionaires, such as stocks, bonds and property, which primarily help build their wealth. Those assets today can skyrocket in value without incurring any taxes until they’re sold. Lee said there are an estimated 186 billionaires in California, and noted the tax would affect less than the top .1% of Californians. “Last year alone, billionaire growth grew by $250 billion dollars. That’s the entire size of the state budget,” Lee said, pointing to a study by the California Budget and Policy Center. Passing the tax is expected to be a heavy lift, even in California’s Democratic supermajority Legislature. AB 925 will need a two-thirds vote from the State Senate and Assembly before voters have the chance to ultimately decide the issue. Brandon Richards, a spokesman for Gov. Gavin Newsom’s office posted on X Tuesday morning saying, “As @CAGovernor Newsom has said repeatedly over many years, a wealth tax is not part of the conversation – wealth tax proposals are going nowhere in California.” Republicans have said they are also ready to reject the measure. “This is going to be just another reason for people with resources not to live in California,” Republican state Sen. Roger Niello said on Monday. Meanwhile, Gov. Gavin Newsom this week is expected to announce his proposed first draft of the state budget this week amid an estimated $68 billion shortfall.Wednesday is the deadline for the governor to announce his 2024-25 budget.See more coverage of top California stories here | Download our app.

SACRAMENTO, Calif. —

As California lawmakers brace for a major budget deficit, state lawmakers in a key committee this week are expected to consider a new tax on the richest of the rich.

Lawmakers in the State Assembly’s Revenue and Taxation Committee are dusting off Democratic Assemblyman Alex Lee’s Assembly Bill 259, which went nowhere after it was first introduced in 2023. The measure would impose a 1.5% tax on the assets of Californians with a worldwide net worth of $1 billion as soon as 2024, and a 1% tax on those with a net worth of $50 million by 2026. The hearing is set for Wednesday afternoon.

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“I’m delighted after so many times of introducing the wealth tax, it’s finally getting its first hearing,” Lee told KCRA 3 on Monday. “It would be the fiscally responsible thing to look at the people who effectively pay little-to-no taxes than ask again for the working class or middle-class people to shoulder cuts or shoulder new taxes.”

The new measure takes aim specifically at the assets of mega-millionaires and billionaires, such as stocks, bonds and property, which primarily help build their wealth. Those assets today can skyrocket in value without incurring any taxes until they’re sold. Lee said there are an estimated 186 billionaires in California, and noted the tax would affect less than the top .1% of Californians.

“Last year alone, billionaire growth grew by $250 billion dollars. That’s the entire size of the state budget,” Lee said, pointing to a study by the California Budget and Policy Center.

Passing the tax is expected to be a heavy lift, even in California’s Democratic supermajority Legislature. AB 925 will need a two-thirds vote from the State Senate and Assembly before voters have the chance to ultimately decide the issue.

Brandon Richards, a spokesman for Gov. Gavin Newsom’s office posted on X Tuesday morning saying, “As @CAGovernor Newsom has said repeatedly over many years, a wealth tax is not part of the conversation – wealth tax proposals are going nowhere in California.”

Republicans have said they are also ready to reject the measure.

“This is going to be just another reason for people with resources not to live in California,” Republican state Sen. Roger Niello said on Monday.

Meanwhile, Gov. Gavin Newsom this week is expected to announce his proposed first draft of the state budget this week amid an estimated $68 billion shortfall.

Wednesday is the deadline for the governor to announce his 2024-25 budget.

See more coverage of top California stories here | Download our app.