California billionaire tax proposal sparks exits and warnings from top economists

A California billionaire who moved to Las Vegas shortly before the cutoff date for the state's proposed wealth tax is publicly criticizing the measure. The New York Post reported that car loan titan Don Hankey left California last December ahead of the tax deadline. CNN, The Hill, Puck, and Modern Ghana all reported that the proposed billionaire tax is dividing voters and Democrats across the state. [1][2][3][4][5]

According to the New York Post, more than 100 leading economists have warned that the proposal is driving wealthy residents out of the state. The group includes four Nobel laureates and a former top White House economic adviser. A Stanford study published last month found that at least seven billionaires with a combined fortune of nearly 540 billion dollars have already severed ties with California. [1]

As FTMQ News reported earlier, Proposition 40 proposes a one-time five percent surtax on billionaire wealth. The measure faces broad political opposition, with both Governor Gavin Newsom and state Republicans opposing it. Prediction-market traders on Kalshi and Polymarket expect California voters to reject the proposal alongside 13 other statewide ballot measures during the upcoming election. [10][11]

The United States hosts 902 of the 3,030 billionaires worldwide. California, which entered the Union in 1850, generated a gross domestic product of 4.1 trillion dollars in 2025. [8][9][10]