California’s ‘Billionaire Tax’ is one-time charge to generate $100 billion for social services hurt by Trump Administration cuts
Editor’s note: This story is part of the annual Mosaic Journalism Program for Bay Area high school students, an intensive course in journalism. Students in the program report and photograph stories under the guidance of professional journalists.
It’s no secret that there is a large wealth gap in California. Any shift in billionaires’ fortunes would greatly affect the whole state economy. Being so integral, there is no reason as to why they shouldn’t have to pay their fair share.
In November, the ballot will include a proposition for a one-time, 5% tax on these people. This is the “Billionaire Tax” that has the wealthy across the country worried.
The rich typically hold most of their wealth in stocks, which rise in value over time. If those are not sold, they are not taxed, which is a problem for the state. For example, the four richest Californians (Larry Page, Mark Zuckerberg, Sergey Brin and Jensen Huang) paid an average of just 0.07% of their wealth in taxes each year from 2019 to 2025, according to an opinion piece in the New York Times.
If the proposition is passed, it could raise almost $100 billion in revenue for the state, proponents say. This money would go to social services such as health care, which have recently faced massive budget cuts due to President Trump’s policies.
I’m sure many people can argue that this act will hurt new businesses and California workers. This is nonsense.
A one-time tax means what it says, and it won’t affect future billionaires. And the working class of the state also doesn’t have to worry about suffering from this tax. If billionaires do move away from California, we will not be missing much. The wealthy aren’t exactly known for their generous pay or worker benefits.
While some billionaires have already moved out of state, several remain and will pay their fair share as long as the Billionaire Tax Act is passed.
Fatima Corona is a member of the class of 2027 at San Jose High School.
Read the original post in the Mercury News.
