Billionaires and Economists Clash Over California's Proposed Wealth Tax
Economists debated whether Proposition 40’s one-time 5 % levy on billionaire net worth would generate up to $100 billion in revenue or cost the state billions, while billionaire donors continued to pour millions into the campaign against the measure, NPR reported. Earlier, Google co-founder Sergey Brin contributed $102 million to the anti-tax group Building a Better California, which has spent more than $300 million, according to Fortune. POLITICO. eu noted that more than 70 California billionaires together donated a record $612 million to opposition groups.
The New York Post quoted Don Hankey, who said he left California before the residency deadline, calling the tax economically unsound. Fortune also reported that some economists argue California could double property-tax revenue by matching Texas rates, a larger boost than the proposed billionaire tax. The Los Angeles Times warned that the measure could affect owners of several major sports franchises, potentially influencing ticket prices and the state economy. The Guardian said the ballot will be decided by voters in the upcoming midterm election, with unions and some Democrats supporting the tax.
