This Friday, Joshua Rauh explains the likely consequences for the California economy and state budget should voters adopt a wealth tax on billionaires, drawing on his recent research into the proposal; David Leal examines how Andy Burnham managed to displace Keir Starmer at the head of Britain’s ruling Labour party; and a new Liberty Amplified essay sheds light on the bleak conditions for women and girls in Afghanistan, now back under Taliban control.
California Politics & Policy
California’s proposed Billionaire Tax Act would impose a “one-time” 5% tax on the worldwide net worth of individuals with more than $1 billion in assets. Supporters estimate it could raise roughly $100 billion to help address California’s budget pressures, but that projection depends on a static assumption: that billionaires, their assets, and their future income remain in the state. The evidence suggests otherwise, Senior Fellow Joshua Rauh argues in this new Policy Stories short video. Once billionaire departures are considered, projected revenue falls to roughly $40 billion, a shortfall exacerbated by the loss of regular income-tax revenue from those who leave. The measure would also remove California’s constitutional limit on taxes on intangible property, making future wealth taxes easier to impose. In the end, Rauh says, a tax presented as a fiscal solution could instead weaken investment, reduce employment, and erode the revenue base on which the state depends. Watch here.
Democracy in Britain
At Defining Ideas, Senior Fellow and political scientist David L. Leal continues to monitor British by-elections (essentially, special elections). In his latest piece, Leal retraces the chess moves that put Andy Burnham on the board to challenge Prime Minister Keir Starmer, which finally forced Starmer to resign as Labour party leader. Leal also sees signs that the upstart Reform Party is falling short of its expected power, even as Nigel Farage and his party face their own challenge from a party accusing them of being “not right-wing enough.” Meanwhile, Leal says the Tories—thought to be down and out—may be slowly recovering some of their popularity. Read more here.
Freedom Frequency
In the latest installment of the Liberty Amplified series, Mahnaz Akbari tells of the encounters she had as a member of Afghanistan’s security forces tasked with interviewing girls and women. These meetings conveyed a harsh truth: Afghan girls grow up not knowing they can learn to read and write and pursue their own interests. Many also believe that their society does not have a place for them. “I know she was not just a girl in a remote village,” Akbari writes of one meeting. “She was the symbol of millions of girls whose futures were decided before they ever had the chance to choose.” After Afghanistan fell again to the Taliban, women protested in the streets to defend their rights to education and freedom, Akbari writes, but those rights are under attack daily. Read more here.
Revitalizing History
At his Substack Wiser Way, historian and National Security Visiting Fellow Zachary Shore asks whether the passage of laws and policies that promise wide public benefit must depend on some personal connection to a lawmaker, as has often been the case in recent history. “What if our leaders could act even when they themselves are not affected?” he asks. Shore argues that “increasingly, too many of our leaders seem removed from the problems of average Americans,” especially in matters of affordability. The key to getting solutions to problems that may not affect the political class, Shore says, is paying more attention to candidates’ demonstrated compassion when they run for office. “If we want to build a wiser world, we must choose leaders with track records of compassion, as compassion is a requirement for wisdom,” Shore concludes. Read more here.
Technology Policy
A new Hoover Institution report argues that the United States must take proactive steps to enhance space traffic coordination. It notes how rapid growth in satellite launches, combined with a lack of standardized international regulations and data-sharing practices, increases pressure on the orbital environment and creates significant risks for orbital safety. “Space Safety and Sustainability, Part II: Recommendations,” authored by Science Fellow Simone D’Amico and colleagues, outlines urgent strategies for improving space traffic coordination and ensuring the long-term safety, security, and sustainability of the orbital commons. The report proposes a three-pillar approach centered on establishing clear domestic policies for data sharing, investing in advanced technologies like artificial intelligence for space operations, and exporting US standards internationally. Read more here.
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