California's proposed Billionaire Wealth Tax faces failure due to wealth flight, as billionaires can relocate while land cannot. A land value tax of just 0.25 percent on California's estimated $8.14 trillion in land value would raise the same $20 billion annually on a much larger, immobile tax base that grows with the economy.
California's Proposition 40 would impose a one-time wealth tax of up to five percent on billionaires, but the policy raises fundamental questions about how to value privately-held companies like In-N-Out Burger. The article argues that wealth taxes could force owners of private companies to sell shares to pay tax liabilities on assets that have no market price, potentially disrupting family businesses and their operations.