Economics Nobel Laureates' Letter Supporting the California Billionaire Tax [pdf]

marojejian

While the concept of progressive wealth taxation is very important and good, executing on such taxes is very hard. I'm skeptical this bill is actually a positive step in the overall campaign. That said, I think the more discussion about the concept, the better.

jmclnx

Money has to come from someplace if you want the US Gov to stop printing money and inflation. What is hardly mentioned about inflation is the tax cuts for the rich. That increases money supply and forces the Fed to borrow more, or find other ways of raising funds to pay for the government. So yes, either fix the tax code or enable this wealth tax nation wide, no other choice. One reason people like the 50s was everyone was taxed and most wealth was not in the hands of the few.

readthenotes1

The nice thing about economics is how unreplicable it is due to exogenous circumstances. It will be interesting to see how many very successful people decide they don't want to supply even more of the tax base. "Second, the proponents’ 10 percent avoidance assumption is obsolete before signatures have even been submitted. Between the initiatives announcement on October 15, 2025 and the residency snapshot date of January 1, 2026, just six publicly confirmed departures eliminated far more than 10 percent of the base. During this period, nearly 30 percent of California’s wealth tax base left the state, and this only includes the billionaires who publicly announced their departures (see Table 1). " https://libertylensecon.substack.com/p/california-wealth-tax... Unlike in New York City, though, billionaires don't contribute that much to a total income tax receipts- a little over 2%, though that is from about 150 households, so anybody moving will have necessarily a significant impact. https://www.nber.org/papers/w35218 https://www.ntu.org/foundation/detail/leave-if-you-tax-them-...

radialstub

The current tax system is fundamentally flawed, and this will achieve nothing. The system is rigged against people who provide labour, when these people are the ones keeping the system going. Why can companies deduct taxes from operating expenses and investments, yet individuals are taxed on revenue? This means companies can build wealth much easier than individuals. Why is housing, food, education and savings not considered operating expenses?

gustavus

Is this the same California that has spent $30 billion on a high speed rail without laying a track and is expected to finish at a total of $213 billion 31 years after it was approved? Or the one that spent $24 billion dollars fighting homelessness only to have overall homelessness numbers increase? My point being California could do a lot more to fix their financial situation but cutting their expenses than trying to claw more money from people. There's a discussion to be had about taxation in this country but I predict no matter how much revenue they make from this "one time 5% tax", they'll blow the whole thing within 3 years for no gain and then start proposing another "1 time tax" again to try and fix their coffers. After all it doesn't matter how much money you make if you're spending more than you earn, and nothings more permanent than a temporary fix.

justgoaway

the same losers that have been writing open letters for 20 years promoting disastrous and failed policies. we need some fresh air, not old cranks.

matteoraso

This is pointless if the failed Prop 13 amendment doesn't get repealed. Start with the major issues first, and then see if the tax system needs to be changed.

TacticalCoder

When looking at commie-inspired taxes, people would be wise to take a cold hard look at how well things are going in communist countries, like for example Cuba or North Korea. Things aren't exactly great in Cuba atm: the idyllic paradise with gigantic paintings of Che Guevara (even if wasn't cuban, he's still revered as a hero by many in Cuba), the romantic hero (a Rolex-wearing killer but somehow the romantic hero of many) to draw inspiration from. But, believes us, this time this tax is "the best tax we have". This one time this is really it: the communist tax that's going to work. It won't lead to a situation like in NK, it won't bring the desperation that's ongoing in Cuba. No, this time the commie tax is going to be perfect. The solution we need. Trust us.