Wealth tax on billionaires wouldn’t fund the government for a year, expert says
Fortune cites Penn Wharton Budget Model director Kent Smetters arguing that wealth taxes on the ultrawealthy are an inefficient revenue tool: even seizing all wealth above $999 million would fund federal spending for only about seven to eight months, with high administrative costs and limited revenue. The piece notes that many OECD countries repealed wealth taxes due to low yields and cites California’s proposals as a case study in broader reform—advocating instead for stable, broad-based options like sales taxes or VAT and highlighting the political dynamics of tax policy and economic complexity.