Judul : California's Billionaire Tax Push Targets Hollywood and Silicon Valley
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California's Billionaire Tax Push Targets Hollywood and Silicon Valley
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A CaliforniaThe union has initiated an exceptional proposal to implement a 'billionaire's tax' targeting the state's wealthiest individuals.
The pioneering tax would deal a financial setback to the Golden State.s richest residents, aimed at Hollywood millionaires and Silicon Valley entrepreneurs.
There are an estimated 255 billionaires residing in California- including figures such as Jay Z andBeyonce, Kim Kardashian, Mark Zuckerberg and Oprah.
The idea, developed by the Service Employees International Union-United Healthcare Workers West, proposes a one-time 5% tax on any net worth exceeding $1 billion.
Securities such as equities, artwork, and also intangible asset rights would be part of the total.
However, to bring the proposal to life, the union must obtain approximately 875,000 endorsements.
"It would be a pioneering global tax targeting the ultra-wealthy," said Emmanuel Saez, an economics professor at the University of California, Berkeley.The Wall Street Journal.
For a billionaire whose net worth is $10 billion, a one-time tax could amount to $500 million, potentially generating over $100 billion in revenue for the state to support health care and education programs.
They could take as long as five years to complete the payment.
California hosts numerous Hollywood celebrities whose projected wealth isabove $1billion.
Kim Kardashian is reported to have a value of $1.7 billion, while singer and beauty industry mogul Rihanna is also estimated to have a net worth exceeding $1 billion, mainly because of her Fenty Beauty line.
Estimates indicate that Selena Gomez's net worth is approximatelymuch as $1.4billion, while the combined net worth of Jay Z and Beyoncé is reported to exceed $3.5 billion.
Oprah Winfrey resides in California and is valued at approximately $3.5 billion, whereas Jerry Seinfeld is believed to have a net worth of $1.1 billion.
However, even the most affluent celebrities in Hollywood find their net worth overshadowed by the tech moguls residing in California.
Mark Zuckerberg's estimatedHis net worth is approximately $251 billion, which could result in a tax bill of $12 billion under the proposed plan.
Larry Page, one of Google's founders, has a net worth exceeding $179 billion, while his co-founder Sergey Brin is valued at $166 billion.
Entrepreneurs and podcasters from Silicon Valley, Chamath Palihapitiya and David Sacks, criticized the plan on their All-In show, pointing out that it might push even more wealthy individuals out of the state.
Both Elon Musk and Larry Ellison have recently departed from California,relocating their company headquarters to Texas and establishing homes in other states.
Palihapitiya stated that the union was evidently employing the tax as a 'test balloon' to gauge if regular California voters would be receptive to establishing a 'distinct boundary' between themselves and affluent Californians.
Sacks, on the other hand, stated that he felt personally affected by the suggested tax.
Trump named Sacks to be the White House AI and cryptocurrency official. He mentioned that the plan seemed "as if the Democrats are trying their best to make me leave the state."
"I don't wish to. I'm genuinely trying to hold back," he stated.
The policy has not received support from California Governor Gavin Newsom. The prominent Democrat opposes the measure, as stated by a representative.
Political strategist Dan Newman cautioned that the tax "unleashes a complex situation that leads down a precarious path, imposing taxes on vehicles, homes, wheelbarrows, and all other items."
Some critics pointed out that technology and artificial intelligence startups might have 'exaggerated or excessively high' valuations, which could lead their founders to become billionaires according to the proposal's rules, even if they don't truly possess that level of wealth.
They might then be compelled to pay large amounts of money they genuinely do not possess.
Although the tax would be unprecedented, blue states throughout the country have faced growing demands from liberals to develop methods of taxing the wealthy.
The newly elected mayor of New York City, Zohran Mamdani, has suggested a 2% tax on incomes exceeding $1 million as part of his plan to implement broad socialist initiatives.
The proposal would need to be approved by the state legislature, and has faced widespread criticism from affluent developers and companies.
Read more- Could Reeves ignite a significant tax controversy by introducing a daring wealth tax on the affluent?
- What makes wealthy individuals such as Elon Musk and Kelly Clarkson leaving California due to its high expenses and political environment?
- Is Elon Musk's decision to move to Texas triggering a trend of affluent individuals leaving California? Learn how tech leaders are altering the landscape of America's wealth!
- Why are California's richest individuals leaving the Golden State in large numbers for Nevada's tax-free environment?
- Is the debate over Washington's wealth tax causing large corporations and the wealthy to move toward Nevada's vibrant nightlife?
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