A Nobel Prize-winning economist explained why he's backing California's billionaire tax
Daron Acemoglu argued that the proposed California billionaire levy would reverse the effects of tax avoidance and could spur more tax reform.
Nobel laureate economist Daron Acemoglu defended California's billionaire tax in a recent X post. The tax, proposed in Proposition 40, would impose a temporary 5% levy on the wealth of California's billionaires. Acemoglu, who shared the Nobel Prize in 2024 for his research on wealth disparities between nations, argued that the tax would help address the effects of tax avoidance and pave the way for broader federal reform.
Some tech billionaires opposed the tax, with Google co-founder Sergey Brin pledging millions to fight it. Acemoglu acknowledged the proposal's imperfections but insisted that California's tax is a crucial step towards reigning in the power of extreme wealth.
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