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California Proposes Wealth Tax Amid Budget Deficit Concerns

2/14/2026

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Summary

Story summary

California lawmakers propose a broad tax overhaul, including a wealth tax aimed at wealth leaving the state.
Los Angeles plans to raise the sales tax to 10.25%.
Critics say the measures could drive jobs and investment away.
Gavin Newsom, the governor of California, says taxes are not excessively high.
The state’s budget increase since 2019 totals $150 billion, with a deficit estimated at $3–$18 billion.

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Story summary

California lawmakers propose a broad tax overhaul, including a wealth tax aimed at wealth leaving the state.
Los Angeles plans to raise the sales tax to 10.25%.
Critics say the measures could drive jobs and investment away.
Gavin Newsom, the governor of California, says taxes are not excessively high.
The state’s budget increase since 2019 totals $150 billion, with a deficit estimated at $3–$18 billion.