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flag California and Chicago propose wealthy-targeted taxes to fix budget gaps, sparking debate over economic impact.

flag California and Chicago are pushing controversial tax plans to address budget shortfalls as pandemic-era federal funds end. flag California’s proposed billionaire tax would levy a 5% tax on the net worth of about 180 ultra-wealthy residents to raise $100 billion for health care, education, and reparations, while Chicago’s mayor proposes a corporate head tax to close city fiscal gaps. flag Both measures face criticism over potential economic fallout, including the risk of driving high earners and businesses to lower-tax states, despite support from progressive advocates who argue the taxes are fair and necessary.

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