Even if every California billionaire left tomorrow, it would take 25 years for the state to lose as much as it stands to gain from proposed wealth tax
California's proposed wealth tax aims to levy a one-time 5% tax on the wealth of around 200 billionaires, potentially generating $100 billion over five years. Critics argue that this could drive billionaires out of the state, but research suggests that even if all billionaires left, it would take 25 years for California to lose as much revenue as it stands to gain from the tax. The tax is seen as a way to address projected healthcare funding losses due to federal cuts, while billionaire wealth in California has significantly outpaced tax contributions.
- ▪The proposed wealth tax targets around 200 billionaires in California.
- ▪Critics claim the tax could lead to a mass exodus of billionaires from the state.
- ▪Research indicates that even if all billionaires left, it would take 25 years to equal the projected $100 billion gain from the tax.
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California’s proposed, one-time billionaire wealth tax has its fair share of critics. From the ultra-rich Californians who have already voted with their feet by leaving the state, to the Trump administration itself, a common line of attack has been that the measure could drive away more billionaires and eventually starve the state of tax revenue.Recommended Video The tax, which will be on the ballot in November, would charge around 200 California billionaires a one-time 5% levy on their total wealth, with proponents targeting additional revenues worth $100 billion spread out over five years. Most of this revenue would go toward offsetting projected losses in health care funding worth tens of billions of dollars due to federal cuts.
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