California

California's 'Wealth Tax' Could Cost the State $39 Billion

New study finds that 85 percent of "plausible scenarios" result in negative revenue for the state as wealthy residents flee.

Eric Boehm | 10.20.2026 3:50 PM

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A proposed "wealth tax" on California's billionaires could backfire and cost the state tens of billions of dollars in the long run.

If the proposed tax drives wealthier residents out of the state, California could end up losing between $1 billion and $3.5 billion annually in income taxes, according to a working paper published this week. A pair of researchers at Stanford University warn that the state could end up losing an estimated $39 billion because of the consequences of the........

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