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Opinion | The Case for California’s Billionaire Wealth Tax
- A proposed 5 percent wealth tax on California billionaires could raise about $103 billion over five years if approved in November.
- The plan targets unrealized gains from stock wealth, which often go untaxed until assets are sold.
- The authors argue California’s tax system currently taxes ultrahigh-net-worth individuals at very low rates.
- The piece contends billionaire tax revenue would help fill a state budget hole created by federal cuts.
- Defensive safeguards are included to prevent overreach, including limits to 5 percent of fair market value and deferral options for illiquid holdings.
- The authors claim the measure is carefully written to respect constitutional boundaries.
- Even if some billionaires relocate, the authors argue the state would still benefit from the measure.
- The piece cites rapid wealth growth among California’s top four billionaires as justification for the tax.
- The authors emphasize that the tax would focus on billionaires, not the broader population.
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