The 5% Rate and the Phase-In At exactly $1 billion in net worth, no wealth tax is due. However, the tax kicks in gradually for anything above that: For every $2 million above $1 billion, the rate phases in by 0.1 percentage point — 50 increments of $2 million — until the full 5% rate applies at […]

The “Billionaire Wealth Tax” Is Really an Aggressive Expansion of California’s Property Tax The proponents of this tax go to great lengths to avoid calling it a property tax. Instead, they refer to it as an “excise tax . . . on the activity of sustaining excessive accumulation of wealth.” This is disingenuous because the […]

The “One-Time” Wealth Tax Is Not Intended to Be “One-Time.” Thank you CalTax Foundation for hosting me and co-panelist Andrew Wilford today to discuss California residency issues, with an emphasis on California Initiative No. 25-0024, dubbed the “2026 Billionaire Tax Act.” https://lnkd.in/gF6yeQus Although proponents call this a “one-time” tax, that is misleading. The text of the initiative […]

What is the California Billionaire Tax Act? California voters are being asked to approve Initiative No. 25-0024, dubbed the “2026 Billionaire Tax Act.” If passed, it would impose a one-time 5% wealth tax on any individual or applicable trust with a net worth of $1 billion or more as of December 31, 2026. This is […]