Stanford economists: California 1-time 5% billionaire tax could cost $39B
California's plan to hit billionaires with a one-time 5% tax is facing serious pushback.
Stanford economists say the state could actually lose $39 billion overall, since the tax is expected to raise just $30 billion, way less than the hoped-for $100 billion.
The reason? Many wealthy residents have already left, shrinking the pool of people who'd pay.
Billionaire departures threaten California $3.5B annually
Big names like Peter Thiel and Google's Sergey Brin and Larry Page have moved out, which means California could lose up to $3.5 billion a year in regular income taxes if this trend keeps up.
The proposal has sparked heated debate: tech leaders and Gov. Newsom are worried it'll drive even more rich folks away, while others argue that any losses might take years to really show up.
For now, it's a hot topic as voters get ready for decision day on November 3.