- A wealth tax proposal in California is being analyzed by the Tax Foundation, with political figures like Gavin Newsom and Andrew Yang publicly opposing it, and Google co-founders being mentioned as potential taxpayers.
- A tax proposal is reportedly driving wealthy residents out of California.
Stanford Economists: California Wealth Tax May Fail to Meet Revenue Goals
- Reports
- 6
- Developments
- 1
- Repetition
- 83%
New informationRepeats or wire copies
What happened
Stanford economists published a working paper through the National Bureau of Economic Research analyzing the impact of a proposed wealth tax in California. The paper notes that seven billionaires, including Peter Thiel, Larry Page, and Sergey Brin, have already moved out of the state, removing approximately $540 billion of potential taxable wealth. The economists calculated that the one-time 5% state tax might only generate about $30 billion, significantly less than the $100 billion estimated by supporters.
From cbsnews.com
Why it matters
The study suggests that while the tax could generate a sizable amount of new revenue, future income tax losses from the shrinking billionaire population could offset the windfall. The authors estimated that California could lose between $1 billion and $3.5 billion annually in income tax revenue if these departures continue.
A wealth tax proposal in California is currently being analyzed, with political figures publicly opposing it.
From cbsnews.com
Who's involved
- Stanford UniversityPublished the working paper analyzing the tax implications.
- National Bureau of Economic ResearchHosted the working paper on economic research.
- Larry PageOne of the billionaires who has moved out of California.
- Peter ThielOne of the billionaires who has moved out of California.
- Sergey BrinOne of the billionaires who has moved out of California.
- GoogleCompany associated with Larry Page and Sergey Brin.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- CaliforniaSpeculative
The state might lose between $1 billion and $3.5 billion a year in income tax revenue due to the shrinking billionaire population.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.Keep exploring
Part of
A tax proposal is reportedly driving wealthy residents out of California.Also in this story
All 3 developmentsThe entities involved
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Stanford University
private research university in Stanford, California, USA
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National Bureau of Economic Research
economic research organization in the United States
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Larry Page
American computer scientist and Internet entrepreneur (born 1973)