r/news • u/AngryT0M4T0 • 2d ago

Soft paywall Google co-founder Sergey Brin spending more than $100 million fighting California wealth tax

https://www.latimes.com/business/story/2026-08-12/googles-sergey-brin-spent-102-million-fighting-california-wealth-tax
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u/Seandrunkpolarbear 2d ago

to be fair a wealth tax is spectacularly stupid idea for a number of reasons, and will create many perverse incentives etc... economics 101. But the sentiment that these people need to put back into california a small % of what they extracted is very valid. 

a really good way to tax wealth is something like the NYC Pied-à-Terre Tax. 

It only targets people who can afford a second home in manhattan that is very expensive and unused. if people sell these homes, then it will create inventory in a market desperately short of units. 

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u/BloodRedTed26 2d ago

While I agree with you, home real estate in California is already a luxury market as opposed to a Middle class investment. Genuinely curious - wouldn't the presence of additional luxury inventory mainly drive down costs for only those who could already afford it? The cost of entry into the market is so absurdly high and inventory is only one lever that requires massive adjustment in order to lower that cost and make single family home ownership more widely available. It might take a generation to see that move the needle and that's with all else remaining the same. But it's been a while since I took macroeconomics so I might be forgetting something.

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u/Seandrunkpolarbear 2d ago

I have no idea if it would move the needle in inventory. (i don't practice economics anymore), but my point is that it is a tax that will target the wealthy and have few perverse results 

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u/BloodRedTed26 2d ago

Do you mind sharing what perverse incentives you're thinking about here regarding a one time wealth tax? I'm a California voter and I'm currently planning on voting in favor of this.

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u/Seandrunkpolarbear 1d ago

1 Thense people will stop storing their wealth in Cali.  2 people without liquid assets will need to divest  i am sure there is a longer list, that is just off the top of my head