Tax policy experts provide the latest details and analysis of the 2026 Billionaire Tax Act, a California ballot initiative that would impose a one-time tax of 5 percent on the net worth of the state’s billionaires.
Recent discussions of a proposed wealth tax for the United States have included little information about trends in wealth taxation among other developed nations. However, those trends and the current state of wealth taxes in OECD countries can provide context for U.S. proposals.
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Senator Bernie Sanders introduced a proposed 5 percent annual wealth tax on billionaires to fund direct payments to Americans and expand social welfare programs.
5 min read
The 2026 Billionaire Tax Act, a California ballot initiative, would ostensibly impose a one-time tax of 5 percent on the net worth of the state’s billionaires. Due, however, to aggressive design choices and possible drafting errors, the actual rate on taxpayers’ net worth could be dramatically higher.
18 min read
Proponents of a California wealth tax ballot initiative insist that the proposed wealth tax is temporary: a one-time 5 percent tax that can be paid upfront or over five years with deferral charges. Others are skeptical that the wealth tax would be allowed to expire.
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Policymakers concerned about the current tax treatment of unrealized capital gains would be better off exploring policy solutions like consumption taxes rather than tried-and-failed strategies.
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Policies that increase the tax burden on high earners makes states less competitive, increase revenue volatility, discourage investment, and risk accelerating outmigration of talent and capital. Many top-earners are already leaving high-tax states for Florida, North Carolina, and other low-tax jurisdictions.
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Voters in California this fall will have to determine whether the state will institute a billionaire tax. Advocates of this proposal have been pushing for these kinds of money grabs for decades—and their arguments often run the same. The base is narrow, the lifespan is limited, the cause is sympathetic.
Currently, the European Commission has plans to generate more tax revenue to fund the forthcoming MFF, the long-term budget running from 2028 to 2034. But the truth is, without serious reform, the EU isn’t ready for new taxation.
If approved by voters, the wealth tax will face a flurry of serious legal challenges—some to its overall constitutionality, and some regarding who can be taxed and to what degree if the tax survives broader legal scrutiny.
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A new bill introduced in the Minnesota House seeks to tax non-real assets, imposing an annual tax of 1 percent on “taxable wealth” exceeding $10 million for individuals and trusts from tax year 2026 onward.
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These debates are often framed in terms of fairness. Raise taxes on a few to provide benefits for most, the thinking goes. But in policy, the more important question should focus on mechanics: will this change achieve its stated goal?
This study simulates several large tax increases and consistently finds that even tax increases large enough to close the primary deficit in the near term will lose ground over time and fail to put the debt on a sustainable course.
41 min read
Illinois’ proposed Millionaire’s Tax would raise taxes on Illinois families and businesses in an economically damaging way, further harming the state’s competitiveness and reducing economic opportunity even for those Illinois residents who would not owe the tax directly.
The proposed increase of Vermont’s top income tax rate would have negative effects on the state’s economy and competitiveness.
The proposed California wealth tax could be levied on founders’ voting interests in their companies, despite the initiative’s drafters insisting otherwise.
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The past decade’s record suggests that countries have reliable legislative methods to improve their tax systems through ordinary tax reforms.
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Proponents of a California wealth tax ballot initiative insist that the proposed wealth tax is temporary: a one-time 5 percent tax that can be paid upfront or over five years with deferral charges. Others are skeptical that the wealth tax would be allowed to expire.
6 min read
Structural reforms such as broadening tax bases, improving cost recovery, and shifting toward less distortive taxes can improve competitiveness without necessarily reducing revenue.
7 min read
Senator Bernie Sanders introduced a proposed 5 percent annual wealth tax on billionaires to fund direct payments to Americans and expand social welfare programs.
5 min read
State lawmakers around the country have begun their legislative sessions, and many are considering tax reform. This piece highlights some of the areas on which they are likely to focus.
4 min read
The 2026 Billionaire Tax Act, a California ballot initiative, would ostensibly impose a one-time tax of 5 percent on the net worth of the state’s billionaires. Due, however, to aggressive design choices and possible drafting errors, the actual rate on taxpayers’ net worth could be dramatically higher.
18 min read
For the past 12 years, the International Tax Competitiveness Index has examined which countries have truly embraced tax competitiveness and which ones have lagged behind. Our experts examine how country rankings have changed over time and identify the largest movers and shakers.
5 min read
Instead of implementing new wealth taxes, European policymakers should focus on making the current tax system more efficient and transparent.
Switzerland’s proposed 50 percent billionaire estate tax promises negligible revenue, risks economic harm, and strips cantons of their autonomy and tax competition.
5 min read
Spain’s central government could learn some valuable lessons from its regional governments and other European countries about sound tax policy.
7 min read