The California Billionaire Tax Act has officially qualified for the November 3 ballot. The initiative, which aims to impose a one-time 5% wealth tax on the state’s billionaires, would generate an estimated $100 billion in revenue.
Opposition to the Tax
Some lawmakers, including Sen. Tony Strickland, have expressed opposition to the tax, arguing that it would lead to a budget deficit in perpetuity and drive billionaires out of the state. Strickland stated, ‘If you want a budget deficit in perpetuity, pass this… Those jobs now are fleeing California, and we’re going to lose them, dramatically, going forward.’
Others, such as Sen. Sasha Renée Pérez, support the measure, arguing that billionaires and corporations need to pay their fair share. Pérez said, ‘I agree with the proposal overall… We’ve seen inequality grow in an alarming way, and frankly, I think most Californians are sick of it.’
Potential Consequences
The potential passage of the tax has already led some billionaires to relocate to other states. According to a report by the National Taxpayers Union Foundation, the mere proposal of the wealth tax could be costing the state $1 trillion in revenue.
Original reporting: KTBS 3 (Shreveport) — read the source article.
