Economists Make the Case For and Against California’s Billionaire Tax

About this episode

California voters will decide this fall whether the state should impose a one-time 5 percent tax on billionaires, with much of the revenue going toward health care amid federal funding cuts. Supporters say Proposition 40 could raise tens of billions of dollars while also helping to address the growing wealth inequality in the state. Opponents argue the tax could drive billionaires out of California, shrinking the state’s income tax base and ultimately costing more than it raises. We talk to two leading economists: Gabriel Zucman, who helped develop the measure, and Joshua Rauh, one of its most vocal critics, about whether the billionaire tax would help California’s economy – or hurt it.…