Prospects for a broad tax increase on wealthy Californians may be dim, but Gov. Gavin Newsom is targeting a narrow slice of them for higher tax bills if they have trusts set up out of state.
The Democratic governor’s proposal could apply to about 1,500 Californians who have set up a specific type of trust in a state without an income tax. If enacted, the levy would bring California only a small revenue gain—$30 million in the first year and about half of that in future years as this type of trust is used less. California also would join New ...