"The Billionaire Tax Act, which backers are pushing to get on the November ballot, would charge California's 200-plus billionaires a one-time, 5% tax on their net worth in order to backfill billions of dollars in Republican-led cuts to federal healthcare funding for middle-class and low-income residents."
"Among those critics is San José Mayor Matt Mahan, a tech-friendly Democrat who is contemplating a run for governor. "Over the last 30 years, we've seen a dozen European countries pursue national-level wealth taxes," Mahan said. "Nine of them have rolled them back. A majority have seen a decline in overall revenue. It's actually shrunk the tax base, not increased it, and it's because it creates a perverse incentive and drives capital flight.""
The proposed measure would levy a one-time, 5% tax on the net worth of more than 200 California billionaires to replace billions lost from Republican-led federal healthcare funding cuts. Critics warn that historical national-level wealth taxes in Europe often failed, prompting rollbacks, revenue declines, and capital flight. Backers say the measure incorporates lessons from past attempts and includes detailed rules designed to prevent wealthy individuals and lawyers from dodging the tax. UC Berkeley tax law faculty helped draft the measure and plan to provide voters with full text and explanatory materials if the measure reaches the ballot.
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