California Is Chasing Wealth That Has Feet
3 hours ago
- California certified a Billionaire Wealth Tax for the November ballot: a 5% one-time levy on billionaires to raise $20 billion annually.
- The tax will likely fail because billionaires can move their residency, unlike land which is immobile.
- A new report estimates California's total land value at $8.14 trillion, roughly eight times the billionaire wealth base targeted.
- Six California billionaires have already moved out before the tax cutoff, undermining the projected $2 trillion base.
- A land value tax of just 0.25% would raise the same $20 billion on a larger, immobile base that grows with the economy.
- Prop 13 has frozen property assessments, reducing revenue and forcing reliance on income taxes that drive wealth away.
- Land value taxation is stable, cannot be dodged, and captures public-created value, yet it is being ignored by states.