A proposed one-time wealth tax would apply a 5% levy to the total wealth of about 200 California billionaires. Proponents expect additional revenues worth $100 billion over five years, with most funds used to offset projected health care funding losses from federal cuts. Critics argue the tax could drive more billionaires out of California and reduce future tax revenue. A working paper reports California billionaires paid $4.1 billion in income tax last year, about 0.2% of their collective net worth exceeding $2 trillion. Even if all billionaires left overnight, it would take about 25 years for lost income tax revenue to match the $100 billion expected from the wealth tax over five years.
"Even if every single one of California's wealthiest residents decided to call time on the Golden State, it would take years to vindicate their protests, and the state would likely still come out ahead-for a while at least. Only six prominent billionaires publicly announced to have left the state before Jan. 1st of this year, the proposed tax's deadline to change residency, including Florida-bound venture capitalist Peter Thiel as well as Google cofounders Larry Page and Sergey Brin."
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