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California's Billionaire Tax Could Drive Wealthy Away

4/9/2026

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Story summary
  • California proposes the Billionaire Tax Act, a one-time 5% tax on billionaires that could prompt high-net-worth residents to leave the state.
  • Washington state enacted a 9.9% tax on incomes over $1 million, while Starbucks founder Howard Schultz moved to Florida.
  • New York Governor Kathy Hochul acknowledged tax base erosion and urged the wealthy to return to sustain social programs.
  • Critics say these tax policies may worsen the fiscal situation.