California gubernatorial candidate Steve Hilton has publicly rejected a proposed wealth tax targeting the state’s billionaires, calling the measure an “asset-seizure tax” that could push top talent out of Silicon Valley. Hilton’s remarks come as the ballot initiative, which would impose a one-time 5% levy on residents with net worth exceeding $1 billion, heads toward a voter decision in November 2026.

The candidate argued that such a tax would undermine California’s position as a global innovation hub by encouraging wealthy founders and investors to relocate to more tax-friendly states. His opposition aligns with that of Governor Gavin Newsom, who has also spoken against the proposal, intensifying the political debate around the measure.

Market signals suggest the initiative faces an uphill battle. Prediction-market pricing for the tax’s passage has slipped to 27% “yes,” down from 28% over the past 24 hours, reflecting growing skepticism among traders about its chances of succeeding at the ballot box.

Observers are now watching for further endorsements or opposition campaigns that could shift public perception. Polling data and statements from influential political figures ahead of the vote will be key indicators, as will any legislative maneuvers that might alter the proposal before Election Day.