While supporters of the 2026 Billionaire Tax Act (the “BTA”) project approximately $20 billion annually over five years, those projections depend on legal, valuation, and enforcement assumptions that may not hold in practice. The Legislative Analyst’s Office (“LAO”) has cautioned that actual revenues are difficult to predict and could be materially affected by taxpayer behavior […]
California’s next governor won’t be chosen until November, but the debate over a proposed wealth tax is already defining the race. In the primary debates, candidates from both parties were pressed on whether California should impose a one-time 5% wealth tax on billionaires. What’s most notable: Deep skepticism cuts across party lines about the tax’s design, consequences and […]
IntroductionThe California Billionaire Tax Act (the “BTA”) contains multiple constitutional defects built into its design. It implicates the Due Process Clause, the Dormant Commerce Clause, and other constitutional limits in ways that could lead a court to narrow or invalidate the initiative in whole or in part. These are not theoretical objections. They arise from […]
The 2026 Billionaire Tax Act (“BTA”) asks policymakers to rely on revenue that may be slow, contested, and uncertain. The Act’s own design creates four practical problems: (1) court challenges could delay collection for years; (2) residency disputes could make enforcement difficult; (3) even complying taxpayers may pay over time; and (4) the Optional Deferral Account […]
The allure of a simple tax on the ultra-rich is undeniable. California, a state of immense prosperity, simultaneously struggles with some of the highest rates of wealth inequality in the nation. Yet the proposed California Billionaire Tax Act is a profoundly ill-conceived measure that threatens to inflict more damage than it promises relief. Far from a silver […]
