California billionaire tax faces warnings over departures and legal risks

Economy · First reported 2 Nov, 02:43 · Updated 03:07

Image: Wikimedia Commons · NASA/USGS · Public domain

A California billionaire who moved to Las Vegas says he left before the proposed tax’s residency deadline. The article reports economists’ concerns about potential departures and revenue losses, while supporters say the measure would fund health care and other services.

Don Hankey says he moved from California to Las Vegas in December, before the proposed tax’s January residency deadline; he said his company’s Los Angeles headquarters will remain there for now.
The article cites a Stanford study estimating that at least seven billionaires, with nearly $540 billion in combined wealth, have cut ties with California over the proposal. Economists cited in the article warn that departures could reduce income-tax revenue; supporters say the tax would help fund health care and other services.
Opponents say they are preparing a legal challenge if Proposition 40 passes. The article reports that its outcome is uncertain, with one poll showing 46% support and 43% opposition among likely voters.

Summary written by Lux AI from 2 articles

Key facts

Hankey’s move: He said he left California in December, before the January residency deadline.
Reported departures: A Stanford study cited in the article estimates at least seven billionaires, with nearly $540 billion in combined wealth, have cut ties with California over the proposal.
Estimated tax proceeds: Stanford researchers cited in the article estimate the measure would collect $28 billion to $36 billion, compared with advocates’ $100 billion claim.
Poll cited: One poll reported 46% support and 43% opposition among likely voters.