Tax Scholars Majority Oppose California Billionaire Wealth Tax

A survey conducted by Jeff Hoopes, research director of the UNC Tax Center, reveals that approximately 70% of tax scholars oppose California's Proposition 40. Of the 105 National Tax Association members surveyed, 73 voted against the proposed one-time 5% tax on the wealth of the state's billionaires, while 32 supported it.

Opponents of the measure expressed concerns regarding the difficulty of valuing private companies and the ability of a single state to enforce such a tax. A primary concern is the potential for billionaires to change their residency to avoid the levy, which could undermine the expected revenue.

Supporters, including some Nobel Prize-winning economists, argue the tax could reduce concentrated wealth and generate up to $100 billion to offset federal Medicaid cuts. While academic opposition is high, public opinion is more divided; a September poll showed 52% of likely voters supporting the tax. However, majorities also support competing measures funded by Google cofounder Sergey Brin intended to cancel the billionaire tax.