Voters in California will decide in November whether to impose a one-time, 5% tax on residents and trusts with a net worth of more than $1 billion.
The proposal is deeply controversial, with opponents on both sides of the aisle warning that passage of the measure — the first of its kind in the U.S. — would be a body blow to the state’s competitiveness. But one of the authors of the proposal insists California will be just fine.
“California will, I think, more likely be better off if this is passed than not,” said University of Missouri law professor David Gamage, who helped craft the proposal for the Service Employees International Union (SEIU), which led the drive to get it on the ballot.
Gamage told CNBC the tax, which is supposed to make up for healthcare cuts in President Trump’s so-called “Big Beautiful Bill,” will help maintain California’s standard of living.
