David Gamage argues that a proposed one-time wealth tax will benefit California's standard of living despite fears of a billionaire exodus.
David Gamage, a University of Missouri law professor, maintains that California will benefit from a proposed one-time, 5% tax on residents and trusts with a net worth exceeding $1 billion. The measure, designed to offset healthcare cuts in the "Big Beautiful Bill" under President Trump, aims to maintain the state's high standard of living. While critics, including Governor Gavin Newsom and Republican nominee Steve Hilton, warn that the tax could drive wealthy residents and businesses to states with lower taxes, Gamage argues these fears are overblown. He cites Norway as a successful example, noting that the country has maintained a strong economy and a budget surplus despite significant wealth taxes. Gamage emphasizes that a state's competitiveness relies on high-quality healthcare and education systems to attract workers. While some billionaires, such as Google co-founder Sergey Brin, have already moved to Nevada to avoid the tax, others like Nvidia CEO Jensen Huang have expressed their support for the measure.