Commentary: The billionaires' campaign against the California billionaire tax relies on conjecture and fear-mongering

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Set us as preferred As is the case with most election cycles, the claims and counterclaims about the ballot measures being voted on in California this time around are largely based on caricatures of the measures themselves.That’s especially true of the highest-profile measure, Proposition 40 — the California billionaire tax.What’s indisputable is that this is a “wealth tax.” It’s a one-time 5% levy on assets owned by Californians with more than $1 billion in net worth.

That’s a departure from conventional state personal tax, which is levied on income such as wages and the proceeds from sales of stocks, bonds and other such financial assets.All wealth tax revenue estimates, including our own, face inherent limitations.— Joshua D.Rauh, Hoover InstitutionAlso indisputable is the scale of spending being mustered against the measure and its sources, which are mostly billionaires expecting to be charged the tax.

The leading contributor, as my colleague Queenie Wong has reported, is Google co-founder Sergey Brin, who claims to have moved out of the state, which might enable him to avoid the tax.Brin has contributed $102 million to Building a Better California, the group bankrolling two ballot countermeasures that would nullify Proposition 40 even if it garners a majority of votes.

Commentary on economics and more from a Pulitzer Prize winner.By continuing, you agree to our Terms of Service, which include arbitration and a class action waiver.

You agree that we and our third-party vendors may collect and use your information, including through cookies, pixels and similar technologies, for the purposes set forth in our Privacy Policy such as personalizing your experience and ads.Brin might even view his spending as value for money, since with a net worth estimated at $281 billion as of this week, according to the B...