California's Billionaire Tax Fight and What It Means for the US 'Gold Card'

The news, in one line

A California union backing a 5% tax on billionaires offered to cut the rate to 2%, and Governor Gavin Newsom turned the offer down. The measure cleared its signature hurdle on a Wednesday this week; the backers softened their ask a day later. Reporting notes that six billionaires had already left the state.

This is a state tax story, not a federal immigration announcement. But it lands on a familiar nerve for globally mobile families: where you sit changes what you owe. That same logic sits underneath the US 'Gold Card' (proposed $5M), the $5,000,000 "premium green card" the administration floated in February 2025 to supplement or replace EB-5.

Why a state tax debate matters to a US residency plan

For a Chinese reader weighing US residency, the California episode is a useful reminder of two separate tax layers.

The first is federal. The US taxes its residents and citizens on worldwide income. If the Gold Card becomes a real green card, the holder would be a US tax resident — global income reported to the IRS, with exit-tax exposure if they later give up the status. That is true regardless of which state you live in.

The second is state. California's fight shows how much the second layer can move. A wealth tax, even a proposed one, is the kind of policy that pushes high-net-worth residents to states with no income tax. The headline number — six departures — is small, but it signals that the people a wealth tax targets are exactly the people most able to relocate.

So the practical lesson is not "avoid the US." It is: a US residency decision is really two decisions — federal status, and which state you actually live in.

Where the Gold Card actually stands

Be clear about status: the Gold Card is proposed, not live. You cannot apply today. It was announced in February 2025 as a roughly $5,000,000 route to a premium green card, pitched as a successor to EB-5, with a proposed path to permanent residency and then citizenship — though the details remain TBD.

There is a real legal hurdle. EB-5 was reauthorized by Congress through 2027. Replacing or supplementing it with a $5M card needs legislation, not just an executive announcement. Until Congress acts, the program is best treated as something to track, not a plan to build around.

For Chinese nationals specifically: as a residency route, the Gold Card would let you keep your Chinese passport — it is not a second citizenship, so China's no-dual-nationality rule is not triggered at the residency stage. The trade-off is the worldwide-taxation and exit-tax exposure noted above.

Realistic alternatives if you want options now

If the appeal is mobility and a base abroad — rather than the US specifically — several programs are actually open today and cost a fraction of $5M.

• Panama Qualified Investor Visa — from $300,000, with permanent residency in roughly 30 days. Fast, and Panama taxes on a territorial basis rather than worldwide.
• Paraguay Investor Residency — from $70,000, typically 3–6 months. The lowest entry point here.
• Portugal Golden Visa — from $216,000, with residency in 12–39 months given current backlogs. A European base with a long-term citizenship horizon.
• Austria Residence (financially independent) — roughly 3–6 months, but a tight annual quota makes timing the real constraint.

None of these is a US substitute if your goal is specifically US residency for work, family, or 华侨生 education planning. But they show the gap: the Gold Card's $5,000,000 buys you a status that does not yet exist, while these routes are available and cheaper.

For a fuller picture of the US landscape, see our United States country guide.

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This is analysis, not legal or tax advice. Wealth-tax exposure and exit-tax planning turn on your specific facts — get professional advice for your situation. If the US route interests you, the US 'Gold Card' (proposed $5M) page is the place to follow how it develops.