Billionaire Rick Caruso nearly fled California over wealth tax

Rick Caruso said California’s proposed one-off tax on billionaires led him to consider moving to Texas or Florida, but he and his wife decided to stay because they did not want to leave their family. His account highlights the debate over whether taxing the state’s wealthiest residents would raise funds for public services or prompt departures that weaken California’s economy and charitable sector.

Proposition 40 would impose a one-time 5% tax on California billionaires and was projected to raise $28 billion to $36 billion. With about 72% of the estimated vote counted, 53.7% opposed it and 46.2% supported it. An economists’ study identified seven billionaires who had publicly relocated, representing about $540 billion in wealth; Caruso warned that business activity, jobs and philanthropy could also leave.