Six Nobel Economists Back California 5% Billionaire Tax as Poll Shows 52% Support
Updated
Updated · Financial Times · Sep 19
Six Nobel Economists Back California 5% Billionaire Tax as Poll Shows 52% Support
3 articles · Updated · Financial Times · Sep 19
Summary
Six Nobel laureates including Joseph Stiglitz and Paul Krugman endorsed California’s proposed one-time 5% tax on billionaires in an open letter ahead of the November 3 vote.
The economists said the measure could raise $100 billion to offset federal spending cuts and argued a win in California could spur wealth taxes in other states, federally and abroad.
Their intervention answers a well-funded opposition campaign led by Sergey Brin and other Silicon Valley donors, who have spent more than $100 million warning the tax would drive out wealthy residents and cost the state $25 billion.
The fight has split California Democrats: the state party backs the measure, while Governor Gavin Newsom says a state-level wealth tax would push entrepreneurs elsewhere and should be pursued nationally.
Recent polling suggests a tight race, with 52% of voters in favor and 46% opposed, setting up one of California’s costliest ballot-measure battles.