The Hoover Institution, in a deceptive study, claimed the tax would end up costing more than it brings.
To reach that conclusion, the authors of the study assumed that the tax would become annual. Hence, on the cost side, some billionaires would leave California.
However, on the benefits side, if the tax becomes annual it would generate revenue annually.
But the Hoover economists did not take that into account.
You read that correctly: they assumed the tax would be annual, leading to some outflows, but that it would bring revenue only once.
This makes no sense – but usefully fuels the anti-tax ads.
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