Billionaire Don Hankey slams Prop 40 after leaving California

Key Points:

• A Stanford study found that at least seven billionaires, holding about 30% of California’s billionaire wealth, have left the state due to the proposed Proposition 40 billionaire wealth tax, which critics argue is driving wealthy residents away.
• Don Hankey, a billionaire who moved to Las Vegas before the tax's residency deadline, criticized the tax as economically harmful and warned it sacrifices income tax revenue by pushing wealthy individuals out of California.
• Over 100 economists, including Nobel laureates and former White House advisers, signed a letter urging voters to reject the tax, citing legal concerns, potential for repeated taxation, and difficulties in valuing illiquid assets.
• Opponents, including the California Business Roundtable, are preparing legal challenges if Proposition 40 passes, while supporters, led by SEIU-UHW, argue the tax is necessary to fund healthcare and social services amid federal cuts.
• Polls show a close race for Prop. 40, but competing measures (Props. 41 and 42) backed by Google co-founder Sergey Brin could invalidate key parts of the tax, with Governor Gavin Newsom and other political figures opposing the wealth tax in favor of alternative solutions.