California Billionaire Tax Heads to Ballot as Ultrawealthy Brace for Impact
The California wealth tax, a proposed 5% one-time levy on billionaires’ net worth, will now appear on the November ballot after a last-minute deal failed. This development means over 200 billionaires in the state, more than any other, are facing the prospect of the tax becoming law, leading to anticipation of a costly campaign and potential legal battles. Advisors to the ultrawealthy indicate their clients are preparing for the tax and some are already relocating from California, viewing it as another instance of the state imposing excessive taxes on success. Concerns also remain regarding the practicalities of assessing net worth and potential legal challenges to the tax’s constitutionality, especially its retroactive application and taxation of net worth rather than income.
John Q. Hosedrinker