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flag California’s proposed one-time billionaire tax faces pushback over revenue risks and potential economic harm.

flag California’s proposed one-time 5% wealth tax on billionaires, the 2026 Billionaire Tax Act, faces skepticism over its revenue reliability and potential economic fallout, according to the state’s Legislative Analyst’s Office and Stanford experts. flag The tax could trigger billionaire exits, undermining projected gains and risking long-term losses in income, property, and sales tax revenues, along with reduced investment and jobs. flag Critics say the tax’s justification—funding health care—is weakened by existing high spending and expected federal cuts. flag The “one-time” label is misleading, as it may set a precedent for future wealth taxes, further encouraging relocation.

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