NYT Opinion: Prop 40 wealth tax in California will be a "Disaster"

Attorney and CPA Chad D. Cummings analyzes the lessons from Europe and the risks of California’s proposed wealth tax in this presentation. Of the twelve industrialized countries that imposed wealth taxes in 1990, nine repealed them by 2025 because the taxes proved difficult to administer, drove wealthy residents away, and generated far less revenue than projected. France lost an estimated 200 billion euros over two decades and repealed its wealth tax in 2018. Stanford economists Joshua Rauh and Benjamin Jaros applied that experience to California’s ballot measure and estimated it would raise only about $40 billion—not the $100 billion claimed—with 30 percent of the targeted billionaire wealth base already having left before the residency deadline. The federal proposal has already dropped the threshold from one billion to fifty million dollars and includes a 40 percent exit tax. This presentation explains how redomestication, paired with a change of personal residency and reduction of business operations in California, allows business owners to move their companies out of California. The process transfers the entity’s domicile without dissolution and without federal income tax consequences when done properly. Learn more: https://www.cummings.law/redomestication/