California billionaire tax could backfire, Stanford study says
California voters next month will decide on whether to tax billionaire wealth , a proposal designed to generate billions of dollars to shore up the state's healthcare system. But Stanford economists are now cautioning that the tax could backfire, leaving the state with less in tax revenue than before.
Because additional billionaires have likely quietly moved since the tax proposal was announced, the measure may ultimately generate only about $30 billion, far less than the $100 billion estimated by its proponents, the economists said. If enacted, the tax would apply a one-time 5% state tax on billionaire wealth.
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