Letters: Billionaires will end up paying much more than 5% under Prop 40's tax

This Open Forum letter argues that a proposed California “billionaire tax” under Prop 40 would cost more than a headline 5% once other features are included. The writer says the tax must be paid in cash, which could force founders to sell low-basis stock and trigger capital gains taxes. Using top-rate assumptions totaling about 37 cents of every dollar of gain to taxes, the letter claims raising cash for a 5% wealth levy could require selling roughly 8% of holdings for certain founders. It also cites a nondeductible 7.5% annual deferral charge on unpaid amounts, valuation disputes for private companies and illiquid assets, and the possibility of added legal and appraisal costs. Additional letters in the same section address BART delays and the Roadless Rule for U.S. national forests.