California Proposes One-Time Tax on Billionaires

Law professor discusses challenges and alternatives to taxing the ultra-wealthy's assets

Published on Feb. 28, 2026

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California is considering a one-time 5% tax on billionaires' assets in an effort to generate revenue, but legal experts argue this approach is problematic. Ray Madoff, a professor at Boston College Law School, joins a podcast to discuss the challenges of taxing the ultra-wealthy's wealth beyond just their income, and suggests alternative ways the government could target the assets of the super-rich.

Why it matters

As wealth inequality continues to grow, governments are seeking new ways to tax the assets of the ultra-wealthy who often avoid paying income taxes. However, legal experts warn that a one-time wealth tax on billionaires' assets could face significant legal and practical hurdles.

The details

California is proposing a one-time 5% tax on the assets of billionaires residing in the state, in an effort to generate revenue. However, Ray Madoff, a professor at Boston College Law School, argues this approach is problematic. The ultra-wealthy typically hold their wealth in assets like stocks, real estate, and collectibles, rather than having high incomes, making them difficult to tax. Madoff suggests the government should instead focus on closing loopholes that allow the super-rich to avoid paying taxes on their asset appreciation and inheritances.

  • California is considering the one-time 5% tax on billionaires' assets.

The players

Ray Madoff

A professor at Boston College Law School who specializes in tax policy and wealth inequality.

California

The state government that is proposing a one-time 5% tax on billionaires' assets.

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What they’re saying

“The ultra wealthy of the world have long avoided paying income taxes by not having much of an income at all. Instead, their wealth is generally tied up in things like stock options, family trusts, houses, yachts, rare coin collections and other things that typically are not taxed.”

— Ray Madoff, Professor, Boston College Law School (Everybody's Business* podcast)

What’s next

The California legislature will continue to debate the proposed one-time wealth tax on billionaires.

The takeaway

Taxing the assets of the ultra-wealthy is a complex challenge, as their wealth is often tied up in hard-to-tax forms like investments and real estate. Experts suggest the government should focus on closing loopholes that allow the super-rich to avoid paying taxes on their asset appreciation and inheritances.