California’s billionaires tax isn’t the solution, budget expert says. He blames a ‘perfect storm of craziness’ for this populist climate

Main Idea: Budget expert Kent Smetters says California’s proposed billionaire tax is unlikely to raise much money, and he calls the push a sign of a “perfect storm of craziness” in today’s economy and politics.

Key Points:

• Smetters, a Wharton School professor, says wealth taxes often bring in less money than supporters expect and can be costly to enforce.
• He points to other countries that dropped wealth taxes after they failed to raise enough revenue.
• He argues that even taking all U.S. billionaire wealth above $999 million would fund the federal government for only about seven to eight months.
• Instead of a billionaire tax, he says California should look at broader, more stable taxes, such as a sales tax or a value-added tax.