Stanford Economists Warn California Billionaires' Tax Could Leave State Poorer

Times of India · business

Two Stanford-affiliated economists have warned that California's proposed billionaire tax, Proposition 40, may generate significantly less revenue than anticipated. Their analysis suggests the one-time 5% tax on net worth could raise only around $30 billion, far below the $100 billion projected by supporters. A primary concern is that wealthy residents might relocate, reducing the state's long-term income tax base. The economists estimate that potential income tax losses from billionaire departures could outweigh the tax proceeds, leading to a net financial loss for California.