Good morning. In today’s edition:

• 💰 CA’s billionaire tax
• ⛽ Gas prices hit recent high
• 🤔 How many books are in the world?

…and much more.

Ready, Set, Go: Today’s news should be a ~4.24-minute read (1,128 words).

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"The only defense against the world is a thorough knowledge of it."

–John Locke (1632-1704)

California voters will soon decide whether to impose a one-time 5% wealth tax on all billionaires in the state, after a labor-backed campaign this week said its proposal gathered enough signatures to qualify for the November ballot.

The proposed tax has collected 1.5+ million signatures, well above the ~875,000 required to appear on the ballot, though state officials still need to verify the total.

• If approved, the measure would apply to individuals with a net worth of $1+ billion who lived in California as of January 1, 2026, a criteria that applies to just ~200 residents.
• Under the proposal, a one-time 5% tax would be applied to most of their high-value assets, including stocks, privately held businesses, art, collectibles, and intellectual property.
• It wouldn’t apply to real estate, pensions, or retirement accounts.

The proposal is projected to generate ~$100 billion in revenue for the state, with the funds intended to offset recent federal cuts to state health programs.

The arguments

Supporters of the proposed billionaire tax—including progressive politicians, healthcare workers unions, and other labor orgs—frame the measure as a way for the state’s wealthiest residents to support public services without significantly altering their lifestyles.

They also argue that billionaires were among the largest beneficiaries of recent federal changes that cut funding from state health programs—with the money mostly used to offset federal tax breaks for the very wealthy—and this new tax represents a more fair share of wealth contribution.

On the flip side: Critics of the proposal—including business groups and tech leaders, Republicans, and Gov. Gavin Newsom (D)—argue that imposing a wealth tax at the state level will simply prompt billionaires to relocate, shrinking a tax base that already accounts for a large share of California’s revenue.

• Others raise concerns about how the tax would be implemented, noting the challenges of determining residency and accurately valuing complex assets.
• They also caution that a one-time tax on billionaires is merely a short-term solution that doesn't solve California’s fundamental financial issues, but rather kicks the can down the road.

What do voters think?...More than half of Californians (52%) support the proposed billionaire tax, while 33% oppose and 15% are undecided, per a recent UC Berkeley survey.

Zoom out: California’s proposal is the latest in a growing political divide between states over how to tax high earners. In recent years, GOP-led states have largely moved to cut or eliminate income taxes, while Democratic-led states have increasingly pushed to raise taxes on top earners to fund public services and close budget gaps.

At the same time, wealth taxes are emerging as a key point of debate within the Democratic Party. Some national figures are embracing them, while others warn about potential economic and legal challenges.

📊 Flash poll: Do you support or oppose California’s new proposal to impose a one-time 5% wealth tax on billionaires?

• Support
• Oppose
• Unsure/other

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Here are five stats from this past week that made our team go “whoa.” Hopefully you will, too.

🤕 Americans’ personal financial outlook is at its lowest point in the past 25 years, with a record 55% saying their financial situation is getting worse, per new Gallup polling.

🌐 Just over a third of websites (35%) created since 2022 are AI-generated, according to new research using data from the Internet Archive.

🧑‍💼 The average US CEO is 61 years old, up from around 51 in 2000, per a new working paper. Among S&P 500 companies, the average CEO is 58.5, up from 56 in 2000.

🤖🎓 74% of Americans say it's important that college students be taught how to use AI. But using it in the classroom is a different story; 47% say students would use AI to avoid learning, while 42% say it’d be used to help them learn.

🎰 Nearly every Polymarket trader either loses money or makes little-to-no profit, per new Bloomberg analysis. Over 100,000 accounts have lost $1,000+ since Jan. 2025, nearly 2x the amount that made $1,000+, with most profits going to a tiny slice of apparent bots.

BUSINESS & MARKETS

• 🇺🇸 The US economy rose at a 2% annual rate in Q1 2026, per new gov’t GDP data; that’s slightly lower than analysts expected, but up from 0.5% annual growth in Q4 2025.
• 📈 US stocks rise across the board (S&P: +1.0% | Dow: +1.6% | Nasdaq: +0.9%); the S&P 500 (+10.4%) and Nasdaq (+15.3%) each closed out their best months since 2020.
• 🛢️⛽ Oil prices reach their highest levels since the Iran war began ($126+/barrel) before pulling back. | US gas prices also reach new high since the war began, averaging $4.30/gallon nationwide, per AAA.

SPORTS, MEDIA & ENTERTAINMENT

• 🏌️ LIV Golf officially loses financial support from Saudi’s sovereign wealth fund beyond the 2026 season, jeopardizing the breakaway golf tour's future.
• 🎤 Olivia Rodrigo announces upcoming Unraveled tour, featuring 65 dates across North America, Europe, and the UK.
• 🎓💰 Big 12 becomes first conference in major college sports to agree to a private equity deal, receiving a $12.5+ million infusion along with credit lines of up to $30 million/school.

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SCIENCE, SPACE & EMERGING TECH

• 🏥 President Trump withdraws nomination of Dr. Casey Means for US Surgeon General after she was unable to secure Senate support for confirmation; the president instead nominates Dr. Nicole Saphier, a radiologist and former Fox News contributor.
• 🪐 NASA chief Jared Isaacman says he’s pushing to reignite scientific debate over whether Pluto should be restored as the ninth planet in our solar system, or remain a dwarf planet.
• 🌍 African continent will one day break in two, with Eastern Africa splitting from the rest of the continent along the 310-mile Turkana Rift across Kenya and Ethiopia, new study suggests.

US, WORLD & POLITICS

• 🏛️ House approves long-delayed bill to fund most of the Department of Homeland Security, ending record 76-day shutdown. | Senate approves measure banning senators, officers, and staff from trading on prediction markets like Kalshi and Polymarket.
• 💰 President Trump signs executive order to launch a new website for workers without access to a 401(k) or other workplace plan; low-income Americans would receive up to $1,000/year in matching funds through the site.
• 💥 Trump admin on track to blow past today’s deadline for congressional approval for the Iran war (after 60 days of conflict); White House officials say the ongoing cease-fire stopped the clock, a claim met with skepticism from lawmakers in Congress.

👆 A fishing boat in Massachusetts recently made a 1-in-50-million discovery when they caught a perfectly split-toned lobster. The Wellfleet Shellfish Company donated the creature to the local Woods Hole Science Aquarium.

🤔 Did you know? In 2010, Google researchers estimated there were ~130 million unique books in the world. And with ~2.2 million new titles published each year, that total has likely climbed to at least 158.5 million unique books today.

📰 Worth a read: The surprising history of pretzels

🖱️ What we’re clicking:

• Did Julius Caesar really say “Et tu, Brute?”
• Why playing is no laughing matter for otters
• Rich people didn’t look like this before

That Supra could be yours… Alltroo is giving a Twin Turbo Mk IV plus $25K, supporting the Paul Walker Foundation. Entries start at $10 and go to May 22nd. Enter for your chance to win.

How well did you pay attention this week? Find out here.

1. A recipe calls for 2/3 cup of flour per batch. You make 6 batches, but then add an extra 1/2 cup of flour. How many total cups of flour did you use?
2. A wall is 14 feet wide and 8 feet tall. What is the area of the wall?
3. A runner completes 5 laps around a 1/4-mile track, then runs 3 laps around a 1/2-mile track. How many miles does the runner travel?

🐱 Oxford University has a new unofficial mascot. Issy is a 6-year-old Siberian forest cat who rides the bus with his librarian owner, spends his shifts lounging in an office, and has built a loyal following among students.

1. 4 1/2 cups
2. 112 square feet
3. 2 3/4 miles

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