Wealth tax criticized by billionaires and Gavin Newsom would levy a one-time 5% tax on residents worth over $1bn

Wealth tax criticized by billionaires and Gavin Newsom would levy a one-time 5% tax on residents worth over $1bn

A popular proposal in California to impose a wealth tax on billionaires has gained enough signatures to qualify for the ballot in November, state officials announced on Wednesday.

The news is set to intensify an already heated debate around the tax, which has pitted tech moguls and the state’s governor, Gavin Newsom, against the labor union backing the measure.

The California Billionaire Tax Act, colloquially known as the billionaire tax, would levy a one-time 5% tax on any California resident worth more than $1bn. The proposal is backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW) as a means of funding California’s strained healthcare, food assistance and education programs.

    • sin_free_for_00_days@sopuli.xyzEnglish
      311·
      3 days ago

      Such proposals have raised predictable outrage from the rich, along with threats that they’ll move elsewhere where taxes are lower and dire predictions that their fellow plutocrats will refuse to move in.

      Yet there’s scant evidence for these consequences. In fact, when Massachusetts passed a “millionaires tax” in 2023, conservatives claimed the rich would flee. But two years later, they haven’t — and Massachusetts has collected $5.7 billion for infrastructure and public education. -Robert Reich

      I was listening to NPR a day or two ago. They were talking about a shortage of mansions in the Bay Area. While at the same time talking about a lack of affordable housing. We’re seeing the long term effects of not taxing wealth appropriately.

    • Brkdncr@lemmy.world
      41·
      3 days ago

      I heard It would be 25 years before any negative effects would be felt, assuming they leave the state.