California’s looming capital flight problem could reshape state in 3 key areas

California’s potential "billionaire tax" is the latest catalyst that is driving a capital exodus that puts the state's tax base, budget and political power at risk.

The measure would levy a one-time 5% wealth tax on residents with more than $1 billion in assets, including unrealized gains — a proposal California Gov. Gavin Newsom has warned could backfire.

Supporters say the tax would close budget gaps, while economists warn that it could weaken long-term revenue.

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