Taxes

California Billionaire Wealth Tax Would Cost the State $25 Billion, New Research Finds

"If Californians approve this measure in November, they may discover too late that the wealth they hoped to tax has already left the state—with jobs and economic opportunities not far behind."

Jack Nicastro | 3.6.2026 4:04 PM

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In November, Californians will consider a ballot measure to implement a 5 percent wealth tax on billionaires, which proponents say will generate $100 billion in revenue. It turns out the tax would probably cost the Golden State nearly $25 billion. 

That's the result from a new study out of Stanford University's Hoover Institution, which was published earlier this week. In this study, researchers analyzed the reported and unreported departure of billionaires from the state, as well as flaws in the tax proponents' modeling, to find that the law would reduce revenue to the state's coffers.  

"Over 100,000 simulations with varying discount rates, wealth tax revenues, and lost income tax........

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