wealth tax

Report: California's Proposed 'Billionaire Tax' Is Based on Bad Research

The planned wealth tax leads slightly in the polls and is already driving capital flight.

J.D. Tuccille | 9.18.2026 7:00 AM

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(Illustration: Digitalstormcinema/Iratceva/Dreamstime/Midjourney)

California's proposed "billionaire's tax" on the assets of wealthy state residents enjoys a slim lead in the polls leading up to the midterm elections, though so do two measures that, if they draw more votes, could render the scheme unenforceable. That makes for a high-stakes battle as many prosperous Californians are already fleeing to escape a tax that could force them to surrender ownership stakes in companies they've founded. Even if it doesn't pass, a new report warns that the proposal is based on faulty research and could do vast economic damage.

You are reading The Rattler from J.D. Tuccille and Reason. Get more of J.D.'s commentary on government overreach and threats to everyday liberty.

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A Slight Polling Lead for the Wealth Tax—and for Opposing Measures

A survey conducted September 4–10 by the Public Policy Institute of California found 52 percent support for Proposition 40, which would impose a (supposedly) one-time 5 percent tax on the wealth of people with assets worth over $1 billion. Interestingly, 51 percent of respondents also support Proposition 41, which requires audits for new taxes and bars the way the wealth tax measure would allocate collected revenue, and 54 percent favor Proposition 42, which prohibits taxes on financial assets. Under California law, "if provisions of two or more measures approved at the same election conflict, those of the measure receiving the highest affirmative........

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