Wealth Tax Would Cause California’s Rich to Flee, Newsom Warns

California Governor Gavin Newsom warned that a proposed one-time tax on billionaires will backfire by prompting the ultra-rich to leave the state and expressed disappointment at those who’ve already departed such as Google co-founder Sergey Brin.

“The impact of a one-time tax does not solve an ongoing structural challenge,” Newsom said on Thursday at a Bloomberg News event in San Francisco. “You would have a windfall one time and then over the years you would see a significant reduction in taxes because taxpayers will move.”

The proposal, backed by SEIU-United Healthcare Workers West, would impose a one-time 5% tax ...