California's billionaire tax plan risks driving wealthy residents away
To the editor: The pending loss of healthcare benefits to a multitude of Californians poses a serious challenge that our state leaders must immediately address. Taxing billionaire residents to resolve this problem poses major risks ("Billionaire-tax backers say they have enough signatures to qualify for ballot," April 26).
Because of limitations on property tax rates from 1978's Proposition 13 and a sharp reduction in revenue from the vehicle license fee since 2003, the Golden State, unlike many other states, relies heavily on the incomes of its wealthiest citizens to balance its budget. This basic fact creates persistent challenges in Sacramento's budget process.
If more and more of the highest earners here decamp, in response to the proposed new tax, to red states that do not levy a personal income tax, the future of California's finances, already unsteady, would become more clouded with uncertainty.
Our politicians should work together across party lines to improve the health benefits for all Californians over the long term. A one-off tax that will alienate the highest earners away from the state now and in the future is not the solution.
Christian B. Teeter, Los Angeles This writer teaches global business and international economics at Mount Saint Mary's University in Los Angeles.
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