European Disunion

[Subscription Required] The history of wealth taxes is that they raise much less revenue than hoped as targeted taxpayers find ways to avoid them. That looks to be the case with California’s wealth tax ballot measure (Proposition 40), which a new paper by the Hoover Institution’s Joshua Rauh and Benjamin Jaros estimates will result in a net revenue loss of $38.9 billion.

Hoover Institution fellow Robert E. Hall's 2026 Nobel win offers an opportunity to recall another of his major contributions with Hoover Institution fellow Alvin Rabushka: the idea of a single flat tax. They proposed a flat tax that would simplify tax collection and increase investment in physical and human capital, without abandoning the idea of progressive taxes.

Managing the profound change demands harnessing advantages, mitigating risks, and creating careful legislation.