The Billionaire Exodus: When Tax Fleeing Becomes a Game of Strategy LeBron James' decision to leave the Los Angeles Lakers for Philadelphia this summer has thrust him into the midst of California's contentious Proposition 40, a one time 5% wealth tax on the state's roughly 200 billionaires headed for the November 2026 ballot.
The measure's mechanics are unforgiving, using a hard residency snapshot to determine who owes the tax – and James' move won't retroactively undo his California residency status.
California's billionaire class has been redefining its relationship with the state in recent months.