California’s proposal to impose a one-off wealth tax on its richest residents is facing significant hurdles, and experts say its design has notable flaws. According to the Wall Street Journal, while the tax aims to raise revenue from the state’s wealthiest, it highlights broader economic risks linked to concentrated wealth. The WSJ reports that the US economy is increasingly dependent on a small group of ultra-wealthy households. California’s billionaire wealth tax: What’s being proposed California is considering a one‑time 5% wealth tax on residents with net worth above $1 billion to help fill budget gaps, especially in healthcare funding after federal Medicaid cuts. At the same time, the bottom half of US households owns a much smaller share of wealth, around 2.5%.

Source: Mint February 19, 2026 02:37 UTC