A proposed tax targeting California’s wealthiest residents is drawing strong support from likely voters, but critics warn it would discourage investment and trigger an exodus of high-income earners and businesses from the state.

“I think it’s a really economically disastrous idea,” Adam Michel, director of tax policy studies at the Cato Institute, told Fox News Digital. “It is both diagnosing the problem incorrectly and also won’t fix the problem that is being diagnosed.”

The “2026 California Billionaire Tax Act” would impose a one-time tax equal to 5% on the net worth on individuals making above $1 billion, according to California’s Legislative Analyst’s Office (LAO). Covered assets would include businesses, securities, art, collectibles and intellectual property.

The measure would not count real estate someone owns in their own name (or through a revocable trust), but real estate held through a company they own could still factor into the tax because it can raise the value of that business.

TAX FIGHT PUTS CALIFORNIA ON COLLISION COURSE AS BILLIONAIRES LEAVE FOR RED STATES

An activist holds a sign during a “Rally to Say No to Tax Breaks for Billionaires and Corporations” at the Upper Senate Park on Capitol Hill on April 10, 2025, in Washington, D.C. (Alex Wong/Getty Images / Getty Images)

Supporters — including SEIU-United Healthcare Workers West (SEIU-UHW) — say the measure is an emergency response to save the state’s healthcare system from “collapse” due to potential federal cuts.

According to the LAO analysis, “90 percent of the money would have to be spent on health care services for the public” while the remainder would go toward administrative costs, education and food assistance.

However, Michel says that wealth taxes don’t work in practice, arguing they weaken incentives to build businesses, create complicated administrative headaches and have generated disappointing revenue in countries that have tried them. 

He also says they rest on a flawed “fixed pie” view of the economy that assumes wealth can simply be redistributed through taxation, but in actuality results in slower growth and a worse outcome for everyone.

WASHINGTON POST ARGUES THERE’S ‘LITTLE TO GAIN BY RAISING TAXES ON THE RICH,’ RATES ALREADY HIGH ENOUGH

Michel says a 5% wealth tax would siphon money from businesses, leaving owners with less to reinvest, expand, and hire. (iStock / iStock)

Michel also said a wealth tax differs from an income tax because it is assessed on accumulated assets rather than annual earnings and can translate to a much higher burden on business owners.

If a business earns anything less than a 5% return, every single dollar of profit is taxed, he explained, translating into an income-tax rate at or above 100%, leaving no incentive for an entrepreneur to grow and maintain that asset.

Michel noted the proposal has even drawn opposition from Gov. Gavin Newsom.

“He’s very aware of the fact that this proposal will actually lead to an exodus of the California tax base,” he said.

CALIFORNIA IS BROKE, BUT IT’S NOT TOO LATE FOR THE REST OF US

California Governor Gavin Newsom has come out against the 2026 Billionaire Tax Act. (Fred Greaves/Reuters / Reuters Photos)

Michel cautioned the damage wouldn’t be limited to the roughly 200 billionaires targeted by the initiative. Because most wealth is held in “productive assets” like stock in companies, real estate, and machinery, he warned the tax would penalize the investments that drive the broader economy.

“We will get less housing, we will get less investment in machinery and equipment, we’ll get less investment in new companies,” Michel said. “That ultimately makes everyone worse off.”

California already has the most progressive tax system in the industrialized world, according to the Fraser Institute.

Wealth taxes have been tried around the world and failed, he pointed out, and only a few OECD countries still use them since their peak in the 1990s. In Spain, what was proposed as a temporary one-time levy eventually became a permanent tax on the wealthy. The same thing could happen in California, he warned.

“States like California have an insatiable hunger for taking other people’s money,” he told Fox News Digital. “And if they’re successful this time, there’s nothing stopping them from renewing this tax in future years.”

CALIFORNIA WILL REGRET BILLIONAIRE EXODUS, WASHINGTON POST WARNS

A person holds a ‘Resist Billionaires’ sign as protesters demonstrate against Tesla CEO Elon Musk’s Department of Government Efficiency (DOGE) initiatives during a nationwide “Tesla Takedown” rally outside a Tesla dealership on March 29, 2025, in Pas (Mario Tama/Getty Images)

Michel added that the threat alone of it returning would encourage high-income residents to leave the state.

The bill’s sponsors at the SEIU-United Healthcare Workers West say it is about making billionaires pay their “fair share.”

“California’s billionaires pay much lower tax rates than what working families pay out of every paycheck. And soon, massive federal healthcare funding cuts will collapse key parts of the California healthcare system,” Suzanne Jimenez, chief of staff at SEIU-UHW, told Fox News Digital.

She warned “local hospitals and emergency rooms will shut their doors forever” unless voters approve the Billionaire Tax so “billionaires pay their fair share” through a “one-time emergency 5% tax.”

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SEIU members protesting ICE on Friday, Jan. 23, 2026.  (Hyoung Chang/The Denver Post / Getty Images)

She rejected “sensationalized claims” from “a handful of billionaires and their highly-paid consultants” that there’s been an exodus from California before the Jan. 1, 2026, residency deadline. Citing “a lack of public reports or confirmations,” she says it “does not appear to be true,” and that “the overwhelming majority” of roughly 200 billionaires “appear to have opted to remain.”

Jimenez said nurses, healthcare workers, teachers, and firefighters “pay taxes on nearly every dollar they earn,” and argues that without the measure, “higher healthcare costs and higher taxes will be shifted onto millions of Californians” already facing “skyrocketing healthcare and prescription costs.”

She called the debate a “convenient distraction” while her union’s “120,000 healthcare workers” stay focused on keeping hospitals and ERs open for “California’s 40 million residents.”

“While these outlandish claims are a convenient distraction for a small number of billionaires, the 120,000 healthcare workers of our union remain focused on keeping California’s hospitals and ERs open for California’s 40 million residents who rely on them,” she added.

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Even though the proposal is still in the signature-gathering phase to qualify for the November ballot, it’s drawn strong support from likely voters, according to new polling. A February 2026 Nestpoint survey found 60% of likely voters back the wealth tax, even as a majority of those same respondents say the move would spark a business exodus and cost local jobs.

Fox News’ Kristen Altus contributed to this report.

The Hartlepool firm’s ‘strategic overview’ has led to the planned of disposal of the regional pubs

Four North pubs have been placed on the market by their owner following a strategic assessment of its UK portfolio. Hartlepool brewing and hospitality operator Camerons Brewery has owned and operated the highly successful Head of Steam brand since purchasing it in 2013.

Throughout the years, the brand has expanded to bring its proven concept across the nation, growing it into a collection of 16 locations in major towns and cities. From modest origins in Newcastle the traditional pub company – initially established by Tony and Carolyn Brookes in 1995 – now operates in cities including Manchester, Birmingham, Leeds, Hull and Liverpool.

However, specialist commercial property consultant Christie and Co has now been appointed to market four pubs on behalf of Camerons Brewery following an evaluation of its estate. The properties available are The Wheelhouse in Washington, which carries a freehold guide price of £275,000, The Mitre in Bishop Auckland, County Durham, which carries a freehold guide price of £350,000, and the Head of Steam in Newcastle city centre, which is offered for sale and leaseback with a guide price of £450,000.

The list is rounded off by the Head of Steam in Hull, which has a freehold asking price of £475,000. The Head of Steam in Neville Street will continue under the renowned brand, with incoming tenants positioned to develop it further.

The decision follows Camerons Brewery’s sale of 26 pubs to FB Taverns for £8.25m two years ago. The business, which produces lagers and beers including Strongarm and Röad Crew, offloaded the freehold tenanted pubs to the London firm to concentrate on its brewery operations and managed pubs, including the Head of Steam chain, reports Chronicle Live.

John Foots, finance director for Camerons, said: “We have undertaken a strategic overview of the estate and identified these four sites for disposal.

“As is well-publicised, we sold our leased and tenanted estate in 2024. The Mitre and The Wheelhouse are amongst the last of our community pubs operating under franchise, and it makes sense for us to explore a sale.

“The Head of Steam in Hull is a great site but is now somewhat of an outlier when you look across the wider Head of Steam brand, which we are very keen on expanding after our recent success in Manchester.

“The Head of Steam on Neville Street is one of our oldest sites operating under that brand and it has helped shape the rest of the estate in many ways, so we are keen to stay in there. We’re massively confident we can continue to trade well and so a sale and leaseback works brilliantly for us.”

David Cash, regional director – Pubs and Restaurants at Christie and Co, commented: “We have worked with Camerons on a number of sites over the years, and in 2025 brokered sales of Sanctuary in Scarborough and The Rattler in South Shields on their behalf. We expect these new opportunities to be well-received in the market and encourage interested parties to get in touch.”

Mr Cash is additionally representing the proprietor of Tokyo Bar in Newcastle, which was likewise placed on the market this week carrying a £1.25m asking price.

Like this story? For more news from the commercial property scene around the regions, visit our dedicated section here for the latest news and analysis within the sector.

The Governor of the Bank of England has said he was “shocked” by revelations that Lord Mandelson leaked sensitive government information to Jeffrey Epstein during the 2008 financial crisis, saying it was right that the matter is now being investigated by the police.

Andrew Bailey made the comments as he paid tribute to the late former chancellor Alistair Darling, drawing a sharp contrast between Darling’s conduct during the crisis and the alleged actions of the former business secretary.

Asked whether sufficient safeguards exist to prevent those in positions of power from misusing market-sensitive information, Bailey said there was a “very clear” legal framework for dealing with potential breaches and that it was appropriate for the Mandelson allegations to be handled by law enforcement.

He also stressed that the focus should remain on Epstein’s victims, asking: “How is it that we live in a society that this happened and was allowed to happen?”

Bailey appeared visibly emotional as he reflected on images showing Mandelson alongside Darling during the crisis period. He described Darling as someone who acted with “honesty and decency” while helping to steer the UK through one of the most severe financial shocks in modern history.

“Alistair Darling was doing all the right things,” Bailey said. “He was doing them with a thorough sense of integrity, and he can’t speak for himself today, sadly.”

Darling died in November 2023 aged 70.

The comments follow reports that Mandelson kept Epstein informed about the Labour government’s decision to cap bankers’ bonuses in the aftermath of the financial crash and that he had sought to persuade the Treasury to abandon the policy. The disclosures have triggered a police investigation.

Bailey said he was “shocked by what we heard about that period”, reiterating that the priority must be the harm suffered by Epstein’s victims rather than the reputations of those implicated.

The Bank of England governor has previously been drawn into scrutiny surrounding Epstein due to his role as head of the Financial Conduct Authority when the regulator investigated Jes Staley, the former Barclays chief executive, over his relationship with the disgraced financier.

Staley unsuccessfully challenged the FCA’s decision to ban him from senior financial services roles, with the court upholding the regulator’s finding that he had acted with a lack of integrity by misleading it about the nature of his links to Epstein. While the ban was maintained, the court reduced a financial penalty imposed on Staley.

That case centred on a cache of emails between Staley and Epstein, some of which later became public and added to wider concerns about accountability and conduct at the highest levels of finance and government.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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A slide in tech stocks intensified Wednesday, spreading from software into semiconductor shares and other companies linked to the infrastructure build-out for artificial intelligence. The Nasdaq composite posted consecutive 1% declines for the first time since April’s tariff chaos. Here’s what Wall Street pros made of the latest investor jitters:

“With valuations where they are, market reactions are going to be pretty harsh,” said Jack Ablin, chief investment strategist at Cresset Capital. “Expectations right now are very, very high.”

AI adoption is still at an early stage for many companies, but software companies are particularly exposed. “We are now in an environment where the sector isn’t just guilty until proven innocent but is now being sentenced before trial,” JPMorgan Chase analyst Toby Ogg wrote.

Michael Antonelli, a market strategist for Baird Private Wealth Management, said traders were shifting positions more than rethinking their broader market outlook. “People are selling some of their winners to fund some of their software carnage,” he said.

Given how richly valued many tech shares are, “when rotations occur, they occur faster than they have in the past,” said Jonathan Corpina, senior managing partner at Meridian Equity Partners. “If you’re trading this market you got to get in quick and get out quick.”

The 2026 Milano Cortina Winter Olympics burst into action Thursday with early competitions across Italy’s stunning mountain venues, setting the stage for Friday’s grand opening ceremony that will officially launch 19 days of global athletic drama. While the flame lighting awaits, curling, ice hockey prelims and official training sessions delivered first thrills on Day -1, drawing packed crowds to Milan, Cortina d’Ampezzo and beyond.

From mixed doubles curling at Cortina’s Olympic Stadium to women’s hockey clashes at Milan’s Rho Arena, action unfolded across four geographic clusters in this most distributed Games ever. With 116 events and over 3,000 athletes from 90 nations competing through Feb. 22, Milano Cortina promises snow-dusted spectacles blending Alpine tradition and modern flair.

Day -1 highlights: Curling and hockey steal early spotlight

Mixed doubles curling kicked off at 4:05 a.m. ET in Cortina, featuring matchups like GBR vs. SWE, NOR vs. USA and more in round-robin play. The U.S. squad battled Norway early, with stone precision deciding early standings in the 10-team field chasing gold on Day 16.

Women’s ice hockey prelims ignited at Rho Hockey Arena, pitting Sweden against Germany at 6:10 a.m. and USA vs. Czechia at 10:40 a.m. The Americans, defending champions, eyed a statement win ahead of powerhouse clashes with Canada and Finland later Thursday (3:10 p.m.). NHL stars like Alex Carpenter and Abbey Murphy bolster Team USA’s attack in Milano’s state-of-the-art venue.

Alpine skiers hit the Stelvio course in Bormio for men’s downhill training (5:30 a.m.), prepping notoriously steep terrain that will host super-G and downhill races. Luge singles training ran at Cortina Sliding Center (9:27 a.m. and 11 a.m.), where speeds top 130 kph on ice-lined tracks. Snowboard big air qualifiers loomed at 3:30 p.m. in Livigno, teasing gravity-defying tricks.​

Peacock streamed every session live, with NBC’s primetime coverage highlighting U.S. hopefuls.​

Milano Cortina by the numbers: Most compact yet expansive Games

Spanning venues the size of New Jersey across Milan (indoor sports), Valtellina (freestyle/snowboard), Cortina (Alpine/sliding) and Val di Fiemme (jumps/cross-country), Milano Cortina maximizes existing infrastructure. The opening ceremony at Milan’s San Siro Stadium Friday will feature 120,000 spectators, blending fashion-forward spectacle with Olympic tradition.

New sports debut: ski mountaineering (Feb. 13-15) tests endurance on 16km courses with 800m climbs, while mixed team events expand across disciplines. Six new medal events include women’s mono bobsleigh and freestyle skiing aerials team competitions.

Medal pace accelerates post-ceremony: Saturday’s Day 1 offers five golds led by men’s downhill (11:30 a.m.) and women’s skiathlon (1-2:50 p.m.). By Games end, 116 medals will crown champions through Feb. 22’s closing in Verona.​

U.S. medal contenders: Nathan Chen returns, Chloe Kim defends

Team USA fields 118 athletes targeting top-five finishes. Figure skating star Nathan Chen chases Olympic three-peat in Milan, partnering with Vincent Zhou and Madison Chock. Snowboard queen Chloe Kim defends halfpipe gold Feb. 12, facing Maddie Mastro and Hailey Langland.​

Alpine ace Mikaela Shiffrin hunts record 100th World Cup win en route to super-G (Feb. 11), downhill (Feb. 8) and slalom golds. Freestyle’s Eileen Gu and Gus Kenworthy lead aerials and moguls bids. Bobsled’s Elana Meyers Taylor eyes history in women’s mono debut.​

Hockey rosters shine: Men’s squad captained by Auston Matthews features Connor McDavid, Jack Eichel; women led by Kendall Coyne Schofield.​

Italy’s home heroes: Federica Brignone, Sofia Goggia

Hosts Italy boast 130 athletes, strongest in snow sports. Alpine queen Federica Brignone (downhill/super-G) and Sofia Goggia chase podiums on home slopes. Cross-country ace Federico Pellegrino eyes sprint gold; luger Andrea Vötter defends Cortina legacy.​

Opening ceremony co-stars Armani-clad athletes parade through Milan’s fashion district, symbolizing Italy’s style-sport fusion.​

Global storylines: Russia’s absence, China’s rise

Russia competes as neutrals (AIN) sans flag after doping bans, while China deploys 76 athletes led by Eileen Gu (now freestyle/ski cross). Norway’s 89 competitors defend overall titles; Germany’s 114 target biathlon dominance.​

Sustainability defines Milano Cortina: 99% legacy venues, carbon-neutral buses, plastic-free zones.​

Full Day -1 schedule highlights (all times ET)

• 4:05 a.m.: Curling mixed doubles (Cortina)​
• 5:30 a.m.: Men’s downhill training (Bormio Stelvio)​
• 6:10 a.m.: Women’s hockey: SWE-GER (Rho Milan)​
• 9:27-11 a.m.: Luge women’s singles training (Cortina)​
• 10:40 a.m.: Women’s hockey: USA-Czechia (Rho)​
• 11 a.m.: Ski jumping women’s HS106 training (Predazzo)​
• 1:05 p.m.: Curling mixed doubles cont.​
• 3:10 p.m.: Women’s hockey: FIN-CAN (Rho)​
• 3:30 p.m.: Snowboard big air qual. (Livigno)​

Friday’s opening ceremony fireworks

San Siro hosts 6 p.m. ET spectacle blending Milan’s Duomo projections, Cortina torch relay and 6,000 performers. Athletes parade via boats on Navigli canals; cauldron lighting rumored atop Duomo. IOC President Thomas Bach’s final Games precedes handover to LA 2028.​

Day 1 medals dawn Saturday: men’s downhill, women’s skiathlon, mixed doubles curling semis. Biathlon mixed relay (Feb. 8), snowboard halfpipe (Feb. 12) loom large.​

Milano Cortina 2026 launches amid Alpine majesty and Italian passion. From luge’s ice scream to ski jumping’s flight, the world’s elite chase immortality. Updates continue via Peacock, NBC throughout.

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A Uninterruptible Power Supply (UPS) is a vital electrical device that provides backup power during outages, ensuring that businesses continue to run smoothly without interruption.

In today’s fast-paced business environment, any downtime can lead to significant financial losses. A reliable UPS can prevent such disruptions, protecting vital systems and equipment from sudden power failures.

Organizations prioritize a UPS to safeguard equipment and reduce downtime because reliable backup power supports operational continuity during outages and voltage disturbances.

They focus on how a UPS keeps critical loads running long enough for safe shutdowns or seamless transfer to backup sources. Let’s explore 7 ways a UPS can prevent downtime in businesses and enhance operational reliability.

7 Ways a UPS Defends Your Business Against Power Failures

UPS systems provide businesses with an additional layer of protection against unexpected power failures, ensuring reliable performance for critical equipment.

1. Preventing Equipment Damage During Power Outages

Power failures can cause significant damage to sensitive electrical instruments and devices. A UPS provides backup power during these disruptions, allowing businesses to shut down equipment or switch to auxiliary power safely. This process helps protect valuable equipment from potential electrical damage due to sudden power interruptions.

2. Maintaining Data Integrity

For businesses that rely on data, such as financial institutions or IT companies, maintaining data integrity is paramount. A UPS ensures that during power fluctuations or failures, data remains uncorrupted and safe. The backup power provides enough time for systems to execute proper shutdown procedures, preventing data loss or corruption.

3. Ensuring Continuous Network Availability

For organizations that depend on uninterrupted internet access, a UPS is vital. Many businesses use cloud-based services and require continuous connectivity. By deploying UPS systems, businesses can ensure that their network infrastructure remains operational during power disruptions, avoiding delays in communication and work.

4. Supporting Critical Systems During Power Surges

Power surges can disrupt and damage sensitive electrical devices, causing them to malfunction. A UPS is designed to smooth out these surges, ensuring that only a stable voltage is provided to critical systems. By incorporating this system, businesses can safeguard their essential equipment from harmful power spikes, reducing the likelihood of equipment breakdowns.

5. Ensuring Uninterrupted Manufacturing Processes

In industries like manufacturing, continuous operations are essential. A power interruption can halt production lines, leading to delays and financial losses. With a UPS in place, manufacturing systems can continue to run smoothly, even when the main power supply is interrupted. This is especially important for industries where downtime can lead to high operational costs.

6. Extending the Life of Electrical Equipment

A UPS doesn’t just protect systems from power loss; it also utilizes Automatic Voltage Regulation (AVR) to extend the life of electrical equipment by correcting sudden voltage fluctuations. By deploying this reliable power backup system, businesses can reduce wear and tear on their electrical equipment, ensuring longevity and fewer repairs.

7. Supporting Emergency Services and Safety Systems

In emergencies, such as fire alarms or security systems, having a reliable backup power supply is essential. A UPS can provide backup power to these critical safety systems, ensuring they remain operational during a power outage. This is especially important for businesses in sectors like healthcare, where uninterrupted operation of emergency equipment is non-negotiable.

Strengthening Your Business Resilience With Trusted UPS Solutions

UPS power supplies are essential for ensuring continuous operations and safeguarding critical infrastructure from power disruptions. They provide businesses with protection against data loss, reduce downtime, and extend equipment lifespan. By partnering with a reputable electrical brand, businesses can access high-quality, reliable UPS systems supported by professional maintenance services.

These systems are crucial for maintaining data integrity, protecting sensitive devices, and supporting an uninterrupted workflow. Explore advanced UPS solutions today to enhance your business resilience, prevent costly downtime, and keep your operations running smoothly, ensuring long-term success and stability in a power-dependent world.

Business News Philippines was launched in October 2015 as a portal for readers to learn more about operating a business in the Philippines.

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