Critics warn that New York has already lost an estimated $14 billion in recent years as residents and businesses migrated to lower-tax states. Raising taxes further, they argue, risks accelerating that trend.
California’s Fiscal Crossroads
“This is a dangerous game of chicken,” one analyst noted, adding that high earners “can move—and take their money with them.”
As California edges closer to a decisive vote, the wealth tax debate underscores a fundamental tension in modern tax policy: balancing revenue needs with economic competitiveness.
The state may soon learn a hard lesson about mobility in an era where capital—and the people who control it—can cross state lines with ease.
