States Taxing the Wealthy Are Mostly Targeting Income: Explained

Sergey Brin recently made headlines when he left California for a $42 million mansion on the Nevada side of Lake Tahoe, likening his departure to his family’s decision to flee socialism in the former Soviet Union.

What troubled the Google co-founder enough to drive him out of California is a potential one-time tax on the state’s billionaires that’s being aimed for the November ballot. The proposed 5% levy would apply to just 200 taxpayers, according to the measure’s organizers.

Republicans hoping to replace Gov. Gavin Newsom (D) oppose the tax, while Democrats are expressing a range of views ...