Simulate progressive wealth tax yields, behavioral avoidance, capital flight hazards, and net healthcare funding yields using empirical elasticity and migration friction parameters.
| Cohort | Est. Filers | Avg Net Worth | Effective Rate | Annual Gross | Post-Friction Net |
|---|
California hosts roughly 250 billionaires with combined wealth exceeding $2.0 trillion—more than all but two nations on earth. A 1.5% tax on net worth above $1 billion yields tens of billions annually, making it a focal point for healthcare solvency debates.
Wealth tax revenue is rarely static. High-net-worth households engage in aggressive legal restructuring, trust formations, real-estate valuation appeals, and non-liquid private asset discounts. The model incorporates elasticity coefficients derived from European empirical studies (Zucman, Saez, Kopczuk).
When high-income taxpayers relocate to non-income tax states (Nevada, Texas, Florida), the state loses not only potential wealth tax revenue but also high-bracket Personal Income Tax (PIT) and capital gains receipts. The simulator calculates the cumulative offset across multiple budget cycles.