\u00a0<\/h3>\nNew Stanford\/Hoover research warns that billionaire departures could leave the state with a net revenue loss, and Meta disclosed that Mark Zuckerberg weighed leaving California over the tax. In Washington, the fight over I-645\u2019s proposed repeal of the millionaires tax centers on the disputed \u201c$13 billion\u201d revenue figure, while Colorado weighs Amendment 87\u2019s graduated income tax and Rep. Laura Friedman\u2019s TAB Act targets \u201cbuy, borrow, die\u201d at the federal level.<\/strong><\/em><\/h3>\n <\/p>\n
Please find summaries of relevant articles with web links below.<\/strong> Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.<\/a><\/p>\nPolling
<\/strong>Track the Latest Polls in California’s Prop. 40 Wealth Tax Initiative – The New York Times<\/a>; California billionaire tax falling short of majority support, poll finds – POLITICO<\/a>
A TrueDot poll sponsored by POLITICO and UC Berkeley found that out of 909 likely voters, 46% said they were in favor of the measure. 43% said they were opposed and 10% said they were unsure.<\/p>\nFederal
<\/strong>Rep. Friedman Introduces Bill to Close Tax-Avoidance Loophole Used by the Ultra-Rich – Representative Laura Friedman<\/a>
On Thursday, Rep. Laura Friedman (D-CA) introduced the Pay Your Taxes Avoided by Borrowing (TAB) Act. \u00a0The bill would impose a 23.8% excise tax, paid by the borrower, on covered loans issued after December 31, 2026. It would apply only to the portion of a borrower\u2019s total covered loans above $1 million, with related parties counted together so the threshold can\u2019t be split. It would also prevent double taxation by giving the borrower an offsetting long-term capital loss, equal to the taxed loan amount, when they later sell the asset that secured the loan. The bill would require lenders to report covered loans above the threshold to the IRS and to borrowers, and directs Treasury to issue anti-avoidance rules. The following would be exempt from the tax: home mortgages, home equity debt up to $3 million, auto loans up to $100,000, student loans, business loans (other than loans used to fund distributions), and qualified margin loans used for securities trading.<\/p>\nCalifornia<\/strong><\/h4>\nZuckerberg considered leaving CA over wealth tax, Meta says – POLITICO<\/a>
Meta disclosed that CEO Mark Zuckerberg considered leaving California over Prop 40. Meta proposed a new share class allowing him to sell up to half his economic stake without relinquishing voting control, with restrictions easing gradually if he remains a company leader and based nearby.<\/p>\nCalifornia\u2019s Wealth Tax Boomerang – WSJ<\/a>
The Wall Street Journal Editorial Board argues that Prop 40 could reduce state revenue rather than deliver the $100 billion supporters project. It cites a Hoover Institution study estimating a $38.9 billion net revenue loss as wealthy residents relocate, legal challenges potentially narrow the tax\u2019s reach, and lost future income-tax payments outweigh upfront wealth-tax collections. According to the Board, seven billionaires holding $539.9 billion had already left before the measure\u2019s proposed residency cutoff, removing nearly 30% of its estimated tax base.<\/p>\nA California wealth tax wouldn\u2019t work, but this one would – The Washington Post<\/a>
Dario Marino argues that the Hall\u2013Rabushka flat tax offers a simpler, more growth-oriented alternative to Prop 40. The plan would tax business profits and household wages above an exemption at a uniform 19% rate, allow immediate deductions for business investment, and avoid additional taxes on interest, dividends, and capital gains. Marino said the household exemption would preserve progressivity while encouraging saving and investment, whereas Prop 40 could force asset sales and discourage entrepreneurship and innovation.<\/p>\nCalifornia billionaire tax could leave state with less revenue, Stanford study cautions \u2013 CBS<\/a>
A study by Stanford economists Benjamin Jaros and Joshua Rauh warns that Prop 40 could raise about $30 billion, rather than supporters\u2019 projected $100 billion, after billionaire departures substantially reduced the potential tax base. If resulting annual income-tax losses persist permanently, the researchers estimate their present value would exceed wealth-tax proceeds by roughly $39 billion. The measure\u2019s union sponsor disputes the findings, arguing the revenue is needed to preserve healthcare coverage, while supportive economists emphasize the economic benefits of public investment. A recent poll found likely voters narrowly divided, with 46% supporting the measure and 43% opposed.<\/p>\nBillionaire tax backers plan to attack Newsom in early presidential primary states – Los Angeles Times<\/a>
Backers of Prop 40 are launching a six-figure television and digital ad campaign in early presidential primary states attacking Gov. Gavin Newsom\u2019s (D) opposition to the measure. The ads accuse Gov. Newsom of siding with billionaire donors over working families who could benefit from healthcare funding. Newsom argues that wealth taxes should be enacted nationally to avoid driving wealthy residents out of California.<\/p>\nWashington<\/strong><\/h4>\nWashington State\u2019s \u2018Millionaire\u2019 Tax Trick – WSJ<\/a>
The Wall Street Journal Editorial Board warns that Washington\u2019s millionaire tax could eventually reach lower-income taxpayers. The Board cited Democratic lawmakers\u2019 suggestions of lowering the threshold to $250,000 or $750,000. The Board also criticized the law\u2019s treatment of pension income and biennial inflation adjustments, and argues that the attorney general\u2019s description of a November repeal initiative, which warns of reduced education and human-services funding, is intended to discourage repeal. The tax faces a constitutional challenge, with a hearing scheduled for February.<\/p>\nSeattle’s Children’s CEO: Millionaires Tax will have philanthropic unintended consequences \u2013 KOMO News<\/a>
Seattle Children\u2019s CEO Christopher Longhurst warns that Washington\u2019s millionaires tax could discourage philanthropy through its $100,000 charitable deduction cap per individual or couple and concerns that out-of-state donors\u2019 charitable giving or nonprofit board service could affect residency determinations. The hospital receives nearly $250 million annually in donations, a substantial portion supporting uncompensated care. State Sen. Jamie Pedersen (D) says lawmakers plan to address the residency issue in 2027 and could consider increasing the deduction cap, while disputing that it would significantly deter giving. Gov. Bob Ferguson (D) and Pedersen argue that repealing the tax through Initiative 645 would jeopardize funding for healthcare and other family benefits.<\/p>\nCaregivers urge vote no on I-645 in Washington – Tri-City Herald<\/a>
In a Tri-City Herald guest opinion, in-home caregiver Ana Claudia Rodriguez Mendoza urges voters to reject Initiative 645, arguing that repealing the millionaire tax would create a $13 billion budget shortfall and jeopardize healthcare, education, child care, and other services. She argues that repeal would also reverse small-business and household tax relief, narrow eligibility for the Working Families Tax Credit, and eliminate free school meals for some students, compounding pressures from federal Medicaid cuts. She also argued that preserving a tax paid by fewer than 1% of state taxpayers would protect essential support for caregivers, their clients, and working families.<\/p>\nIs I-645 a \u2018$13 billion tax break\u2019 for millionaires and billionaires? – The Seattle Times<\/a>
The Seattle Times reports that opponents\u2019 claim that Initiative 645 would give wealthy Washington residents a \u201c$13 billion tax break\u201d reflects projected revenue over four years, not annually, from the state\u2019s millionaire tax. State estimates project $12.9 billion in collections for 2029\u20132032, while a separate $11.4 billion repeal estimate covers a different fiscal period. The initiative would repeal the income tax while preserving accompanying tax breaks for businesses and households. Repeal supporters question the revenue projections and whether eliminating a tax before collections begin constitutes a tax break. Alternatively, the article notes, repeal would eliminate a tax already enacted into law.<\/p>\nIn Vancouver, Gov. Ferguson campaigns against initiative to repeal Washington’s ‘millionaire’s tax’ – KGW<\/a>
Gov. Ferguson campaigned in Vancouver against Initiative 645, arguing that repealing the millionaire tax would forgo billions in future revenue supporting school meals, family tax credits, essential-item sales tax exemptions, and small-business tax relief.<\/p>\nStudy shows job losses, slower economy unless income tax is repealed \u2013 Yahoo Finance<\/a>
A Washington Policy Center\u2013Buckeye Institute report<\/a>, highlighted by the National Federation of Independent Business (NFIB), projects that retaining Washington\u2019s millionaire tax would reduce employment, economic output, consumer spending, and business investment. The estimates include nearly 8,000 fewer jobs, almost $5 billion less economic output, and $3.1 billion less business investment in 2028. NFIB cites the findings in support of Initiative 645, which would repeal the tax, arguing that it would hinder small-business expansion and competitiveness.<\/p>\nColorado<\/strong><\/h4>\nWill the wealthy flee Colorado if a graduated income tax is passed? – The Colorado Sun<\/a>
<\/u>Massachusetts\u2019 experience with a millionaire tax challenges predictions of widespread wealthy-resident departures if Colorado adopts Amendment 87, which would replace its 4.4% flat income tax with six brackets ranging from 3.7% to 8.4% for individuals and businesses. The proposal would lower taxes for roughly 97% of taxpayers and raise an estimated $2 billion initially for education, healthcare, and child care. Massachusetts\u2019 millionaire surtax has exceeded revenue projections without the predicted mass exodus, although its broader economic effects remain uncertain. Colorado opponents, including Gov. Jared Polis (D) and major business groups, warn of reduced competitiveness and investment, while supporters argue the measure would fund essential services and distribute taxes more fairly.<\/p>\n[\/et_pb_text][et_pb_cta title=”Want to learn more?” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/wealth-tax\/” button_text=”Visit our State and Federal Wealth Tax Tracker – Click Here ” admin_label=”State and Federal Wealth Tax Tracker CTA” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#fc2f36″ custom_padding=”13px||18px|||” global_module=”17129″ global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.22.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n
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The need for fact-based reporting of issues important to family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n[\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” divider_weight=”2px” disabled_on=”on|on|on” _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”on|on|on” admin_label=”Video Slider Family Business Stories 2″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_module=”6670″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=03T2VODneEg” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=fHIxWaTwK64″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=TI7P07GbNdU&t=27s” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n
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#incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA #FEUSA<\/p>\n
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California\u2019s Prop 40 billionaire tax remains short of a majority according to a new poll, at 46% support to 43% opposed among likely voters. \u00a0 New Stanford\/Hoover research warns that billionaire departures could leave the state with a net revenue loss, and Meta disclosed that Mark Zuckerberg weighed leaving California over the tax. In Washington, […]<\/p>\n","protected":false},"author":2,"featured_media":18720,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,3,92,115],"tags":[],"class_list":["post-18714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-wealth-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18714"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18714\/revisions"}],"predecessor-version":[{"id":18721,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18714\/revisions\/18721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/18720"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/p>\n
Please find summaries of relevant articles with web links below.<\/strong> Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.<\/a><\/p>\n Polling Federal Zuckerberg considered leaving CA over wealth tax, Meta says – POLITICO<\/a> California\u2019s Wealth Tax Boomerang – WSJ<\/a> A California wealth tax wouldn\u2019t work, but this one would – The Washington Post<\/a> California billionaire tax could leave state with less revenue, Stanford study cautions \u2013 CBS<\/a> Billionaire tax backers plan to attack Newsom in early presidential primary states – Los Angeles Times<\/a> Washington State\u2019s \u2018Millionaire\u2019 Tax Trick – WSJ<\/a> Seattle’s Children’s CEO: Millionaires Tax will have philanthropic unintended consequences \u2013 KOMO News<\/a> Caregivers urge vote no on I-645 in Washington – Tri-City Herald<\/a> Is I-645 a \u2018$13 billion tax break\u2019 for millionaires and billionaires? – The Seattle Times<\/a> In Vancouver, Gov. Ferguson campaigns against initiative to repeal Washington’s ‘millionaire’s tax’ – KGW<\/a> Study shows job losses, slower economy unless income tax is repealed \u2013 Yahoo Finance<\/a> Will the wealthy flee Colorado if a graduated income tax is passed? – The Colorado Sun<\/a> [\/et_pb_text][et_pb_cta title=”Want to learn more?” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/wealth-tax\/” button_text=”Visit our State and Federal Wealth Tax Tracker – Click Here ” admin_label=”State and Federal Wealth Tax Tracker CTA” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#fc2f36″ custom_padding=”13px||18px|||” global_module=”17129″ global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.22.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n About Brownstein Hyatt Farber Schreck [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” divider_weight=”2px” disabled_on=”on|on|on” _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”on|on|on” admin_label=”Video Slider Family Business Stories 2″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_module=”6670″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=03T2VODneEg” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=fHIxWaTwK64″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=TI7P07GbNdU&t=27s” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”on|on|on” admin_label=”Hash tags & Tags” _builder_version=”4.27.6″ _module_preset=”default” disabled=”on” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA #FEUSA<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" California\u2019s Prop 40 billionaire tax remains short of a majority according to a new poll, at 46% support to 43% opposed among likely voters. \u00a0 New Stanford\/Hoover research warns that billionaire departures could leave the state with a net revenue loss, and Meta disclosed that Mark Zuckerberg weighed leaving California over the tax. In Washington, […]<\/p>\n","protected":false},"author":2,"featured_media":18720,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,3,92,115],"tags":[],"class_list":["post-18714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-wealth-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18714"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18714\/revisions"}],"predecessor-version":[{"id":18721,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18714\/revisions\/18721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/18720"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/strong>Track the Latest Polls in California’s Prop. 40 Wealth Tax Initiative – The New York Times<\/a>; California billionaire tax falling short of majority support, poll finds – POLITICO<\/a>
A TrueDot poll sponsored by POLITICO and UC Berkeley found that out of 909 likely voters, 46% said they were in favor of the measure. 43% said they were opposed and 10% said they were unsure.<\/p>\n
<\/strong>Rep. Friedman Introduces Bill to Close Tax-Avoidance Loophole Used by the Ultra-Rich – Representative Laura Friedman<\/a>
On Thursday, Rep. Laura Friedman (D-CA) introduced the Pay Your Taxes Avoided by Borrowing (TAB) Act. \u00a0The bill would impose a 23.8% excise tax, paid by the borrower, on covered loans issued after December 31, 2026. It would apply only to the portion of a borrower\u2019s total covered loans above $1 million, with related parties counted together so the threshold can\u2019t be split. It would also prevent double taxation by giving the borrower an offsetting long-term capital loss, equal to the taxed loan amount, when they later sell the asset that secured the loan. The bill would require lenders to report covered loans above the threshold to the IRS and to borrowers, and directs Treasury to issue anti-avoidance rules. The following would be exempt from the tax: home mortgages, home equity debt up to $3 million, auto loans up to $100,000, student loans, business loans (other than loans used to fund distributions), and qualified margin loans used for securities trading.<\/p>\nCalifornia<\/strong><\/h4>\n
Meta disclosed that CEO Mark Zuckerberg considered leaving California over Prop 40. Meta proposed a new share class allowing him to sell up to half his economic stake without relinquishing voting control, with restrictions easing gradually if he remains a company leader and based nearby.<\/p>\n
The Wall Street Journal Editorial Board argues that Prop 40 could reduce state revenue rather than deliver the $100 billion supporters project. It cites a Hoover Institution study estimating a $38.9 billion net revenue loss as wealthy residents relocate, legal challenges potentially narrow the tax\u2019s reach, and lost future income-tax payments outweigh upfront wealth-tax collections. According to the Board, seven billionaires holding $539.9 billion had already left before the measure\u2019s proposed residency cutoff, removing nearly 30% of its estimated tax base.<\/p>\n
Dario Marino argues that the Hall\u2013Rabushka flat tax offers a simpler, more growth-oriented alternative to Prop 40. The plan would tax business profits and household wages above an exemption at a uniform 19% rate, allow immediate deductions for business investment, and avoid additional taxes on interest, dividends, and capital gains. Marino said the household exemption would preserve progressivity while encouraging saving and investment, whereas Prop 40 could force asset sales and discourage entrepreneurship and innovation.<\/p>\n
A study by Stanford economists Benjamin Jaros and Joshua Rauh warns that Prop 40 could raise about $30 billion, rather than supporters\u2019 projected $100 billion, after billionaire departures substantially reduced the potential tax base. If resulting annual income-tax losses persist permanently, the researchers estimate their present value would exceed wealth-tax proceeds by roughly $39 billion. The measure\u2019s union sponsor disputes the findings, arguing the revenue is needed to preserve healthcare coverage, while supportive economists emphasize the economic benefits of public investment. A recent poll found likely voters narrowly divided, with 46% supporting the measure and 43% opposed.<\/p>\n
Backers of Prop 40 are launching a six-figure television and digital ad campaign in early presidential primary states attacking Gov. Gavin Newsom\u2019s (D) opposition to the measure. The ads accuse Gov. Newsom of siding with billionaire donors over working families who could benefit from healthcare funding. Newsom argues that wealth taxes should be enacted nationally to avoid driving wealthy residents out of California.<\/p>\nWashington<\/strong><\/h4>\n
The Wall Street Journal Editorial Board warns that Washington\u2019s millionaire tax could eventually reach lower-income taxpayers. The Board cited Democratic lawmakers\u2019 suggestions of lowering the threshold to $250,000 or $750,000. The Board also criticized the law\u2019s treatment of pension income and biennial inflation adjustments, and argues that the attorney general\u2019s description of a November repeal initiative, which warns of reduced education and human-services funding, is intended to discourage repeal. The tax faces a constitutional challenge, with a hearing scheduled for February.<\/p>\n
Seattle Children\u2019s CEO Christopher Longhurst warns that Washington\u2019s millionaires tax could discourage philanthropy through its $100,000 charitable deduction cap per individual or couple and concerns that out-of-state donors\u2019 charitable giving or nonprofit board service could affect residency determinations. The hospital receives nearly $250 million annually in donations, a substantial portion supporting uncompensated care. State Sen. Jamie Pedersen (D) says lawmakers plan to address the residency issue in 2027 and could consider increasing the deduction cap, while disputing that it would significantly deter giving. Gov. Bob Ferguson (D) and Pedersen argue that repealing the tax through Initiative 645 would jeopardize funding for healthcare and other family benefits.<\/p>\n
In a Tri-City Herald guest opinion, in-home caregiver Ana Claudia Rodriguez Mendoza urges voters to reject Initiative 645, arguing that repealing the millionaire tax would create a $13 billion budget shortfall and jeopardize healthcare, education, child care, and other services. She argues that repeal would also reverse small-business and household tax relief, narrow eligibility for the Working Families Tax Credit, and eliminate free school meals for some students, compounding pressures from federal Medicaid cuts. She also argued that preserving a tax paid by fewer than 1% of state taxpayers would protect essential support for caregivers, their clients, and working families.<\/p>\n
The Seattle Times reports that opponents\u2019 claim that Initiative 645 would give wealthy Washington residents a \u201c$13 billion tax break\u201d reflects projected revenue over four years, not annually, from the state\u2019s millionaire tax. State estimates project $12.9 billion in collections for 2029\u20132032, while a separate $11.4 billion repeal estimate covers a different fiscal period. The initiative would repeal the income tax while preserving accompanying tax breaks for businesses and households. Repeal supporters question the revenue projections and whether eliminating a tax before collections begin constitutes a tax break. Alternatively, the article notes, repeal would eliminate a tax already enacted into law.<\/p>\n
Gov. Ferguson campaigned in Vancouver against Initiative 645, arguing that repealing the millionaire tax would forgo billions in future revenue supporting school meals, family tax credits, essential-item sales tax exemptions, and small-business tax relief.<\/p>\n
A Washington Policy Center\u2013Buckeye Institute report<\/a>, highlighted by the National Federation of Independent Business (NFIB), projects that retaining Washington\u2019s millionaire tax would reduce employment, economic output, consumer spending, and business investment. The estimates include nearly 8,000 fewer jobs, almost $5 billion less economic output, and $3.1 billion less business investment in 2028. NFIB cites the findings in support of Initiative 645, which would repeal the tax, arguing that it would hinder small-business expansion and competitiveness.<\/p>\nColorado<\/strong><\/h4>\n
<\/u>Massachusetts\u2019 experience with a millionaire tax challenges predictions of widespread wealthy-resident departures if Colorado adopts Amendment 87, which would replace its 4.4% flat income tax with six brackets ranging from 3.7% to 8.4% for individuals and businesses. The proposal would lower taxes for roughly 97% of taxpayers and raise an estimated $2 billion initially for education, healthcare, and child care. Massachusetts\u2019 millionaire surtax has exceeded revenue projections without the predicted mass exodus, although its broader economic effects remain uncertain. Colorado opponents, including Gov. Jared Polis (D) and major business groups, warn of reduced competitiveness and investment, while supporters argue the measure would fund essential services and distribute taxes more fairly.<\/p>\n<\/p>\n
<\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/p>\nWe hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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