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Professor David Gamage was quoted in an article in the New Republic regarding the “billionaire tax” ballot proposal in California that he and his colleagues helped draft:
David Gamage, a professor of law who specializes in tax law at the University of Missouri and helped write the proposal, said that the simplicity of the tax was part of its appeal. The SEIU-UHW wanted to raise money very quickly, and the fact that the tax would affect such a small number of taxpayers means the state could easily conduct hand-audits to collect it. But it also means that the projected revenue—about $100 billion over five years, since the billionaires would not have to pay the tax all at once—could be impacted if even a few billionaires made good on their promise to leave.
The proposal relies on California’s legal definition of residency, which means that if they are “domiciled” in California but leave for a transitory or temporary purpose, they may still count as a resident. Simply buying a second property elsewhere wouldn’t count. “Certainly, a lot of billionaires bought some property in Florida and were reported as maybe leave,” Gamage said. “Whether any of them actually left as a matter of California law, I haven’t seen any critical reports that make me think so. I wouldn’t be surprised if … one or two did…I would be very surprised if it’s a substantial number did.” It’s unclear if any billionaires changed their residency before January 1 in a way that abides by California law, and they’d likely have to prove the change in court.”