CalChamber Board Opposes Initiatives to Impose Wealth Tax, Restrict Artificial Intelligence Development

For Immediate Release
Contact: John Myers
[email protected] | [email protected]

CalChamber Board Opposes Initiatives to Impose Wealth Tax, Restrict Artificial Intelligence Development

(Dec. 5, 2025) Yountville, CA - The California Chamber of Commerce Board of Directors voted today to formally oppose two proposed ballot measures that would inflict lasting damage on the state's economy.

The Board took action to oppose what proponents call The California Kids AI Safety Act - an effort to impose sweeping, unworkable limits on artificial intelligence - and a proposed tax based on an individual's presumed wealth, the 2026 Billionaire Tax Act.

CalChamber leaders believed it was important to weigh in early, before either measure qualifies for the November 2026 ballot, to warn California voters of the far-reaching consequences should these proposals become law.

Sweeping Overreach on Artificial Intelligence

CalChamber opposes The California Kids AI Safety Act because it seeks to impose far-reaching regulations that would undermine both AI's potential and the new guidelines signed into law by Gov. Gavin Newsom in September.

Contrary to its supporters claiming their effort is only focused on protecting children, the initiative would impact almost all AI development and deployment.

Developers would face new compliance risks as well as scores of frivolous lawsuits. And oddly enough, the measure's extreme enforcement provisions would likely require AI companies to access even more of a user's private information to avoid legal liabilities.

Simply put, its passage could easily push the AI industry out of California.

Untested Tax Increase Sets Dangerous Precedent

CalChamber leaders believe voters should be wary of any proposal promising easy solutions to erasing state government's looming budget deficit, especially one that sets a reckless precedent without careful consideration of the consequences.

The proposal measures 'wealth' in ways that would include unrealized gains on shares held by founders of Silicon Valley startups, all in service of a one-time infusion of tax revenue that does nothing to solve the state's systemic budget problems.

About CalChamber

The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes companies of all sizes and from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment to stimulate California's economy and create jobs. Please visit our website at www.calchamber.com.