Opinion Voices | Contributor: Why billionaires shouldn't fuss over the wealth tax by Stephen Land
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Billionaires and their allies are launching a fierce campaign against California’s proposed one‑time 5 % wealth tax on net worth over $1 billion, arguing that the measure is poorly designed, costly to administer, and would have little impact on the rapid growth of massive fortunes that benefit from untaxed “unrealized gains.” The article explains that while ordinary workers pay roughly 40 % of their earnings in federal, state and payroll taxes, billionaires can let appreciated assets swell without ever triggering income tax, effectively paying zero on most of their wealth. A genuine wealth tax would treat that appreciation like ordinary income, recapturing a large share of the revenue already lost to the public treasury and reducing the outsized political influence that billionaires fund through massive lobbying. It also notes that a modest 5 % levy would barely dent fortunes built on untaxed gains and calls for broader reforms—such as a federal Billionaire Minimum Income Tax and similar state initiatives—to address systemic inequality and ensure the ultra‑wealthy contribute at rates comparable to everyone else.
Read more: https://www.latimes.com/opinion/story/2026-05-23/why-billionaires-shouldnt-fuss-over-wealth-tax
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