Two States, Two Visions: California Wants to Add a Wealth Tax; Florida Wants to Remove One
4th March 2026
While Sacramento legislators debate how to extract more money from residents who are already leaving, Tallahassee legislators are moving in the opposite direction. The fiscal philosophies now playing out in California and Florida represent the starkest tax policy divergence in modern American history—and the numbers tell the story.
In California, there is a $12 billion budget deficit, the product of spending commitments that expanded faster than the revenue base meant to fund them. The legislative response, rather than spending restraint, has been a parade of wealth tax proposals. The latest—Initiative 25-0024, the 2026 Billionaire Tax Act—would impose a one-time 5 percent excise tax on the net worth of California residents exceeding $1 billion as of Jan. 1, 2026. Applied to the state’s approximately 200 billionaires, the measure is projected to raise roughly $100 billion, with 90 percent directed to Medi-Cal.
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Now consider Florida, in which the policy signals are vastly different. The state already has no income tax—a structural advantage that has driven a decade of net migration from high-tax states. Governor Ron DeSantis is now pushing further: a constitutional amendment on the November 2026 ballot that would eliminate property taxes on homesteaded primary residences. The Florida House passed HJR 203 on Feb. 19, 2025, by an 80–30 party-line vote. If the Senate concurs and 60 percent of voters approve, Florida would become the first state in American history with neither an income tax nor property taxes on primary residences.