Billionaires Oppose California Wealth Tax While Proposing Alternatives
Ultrawealthy investors and entrepreneurs oppose California's Prop. 40 wealth tax, arguing it would drive wealth from the state while suggesting alternative tax reforms.
Billionaires across the political spectrum are opposing California's Prop. 40, arguing that the proposed wealth tax would cause the ultrawealthy to flee the state and erode its economic competitiveness.
While rejecting the wealth tax, several high-net-worth individuals have proposed alternative reforms to ensure the wealthy pay a fairer share. Energy investor John Arnold suggested matching tax rates for long-term capital gains and ordinary income and eliminating tax benefits for sports franchise owners. Entrepreneur Mark Cuban proposed increasing the 1% tax on corporate stock buybacks and raising taxes on windfall profits exceeding $1 billion per transaction.
Other proposals include a suggestion from investor Bill Ackman to tax personal loans taken against appreciating assets to combat the "buy, borrow, die" strategy. Additionally, Amazon founder Jeff Bezos advocated for eliminating federal income tax for the bottom half of workers.
