# Billionaire Who Left California Blasts Prop. 40 as More Than 100 Economists Warn the Wealth Tax Is Already Driving Fortunes Out

Car-loan magnate Don Hankey moved to Las Vegas before the cutoff. Stanford researchers estimate the tax would raise $28 billion to $36 billion, not the $100 billion backers claim. Californians vote Tuesday.

- Section: [Economy](https://rightnewsrightnow.com/economy/)
- Published: 2026-11-02
- By: RightNewsRightNow Staff
- Canonical page: https://rightnewsrightnow.com/articles/california-billionaire-don-hankey-prop-40-wealth-tax-100-economists-stanford-28-36-billion-new-york-post/

With Californians voting Tuesday on Proposition 40, a billionaire who left the state is criticizing the wealth tax, and more than 100 economists are urging a no vote, according to the California Post, the New York Post's California edition.

The billionaire. Don Hankey, whose Hankey Group invests in real estate, insurance and auto loans, told the paper he left California last December, just ahead of the January residency deadline for the proposed tax. "I felt I just wasn't treated well," he said, and "it just economically makes no sense to me." He employs about 2,000 people in Southern California and told Forbes in January that his headquarters would stay in Los Angeles for now. He told the Post his firm co-owns an office building in Las Vegas, occupies two floors and may expand.

The economists. In an open letter organized by Stanford economist Jon Hartley, more than 100 economists, including four Nobel laureates and former Bush adviser Glenn Hubbard, say there is already evidence that many wealthy residents have left to avoid a possible tax. They warn that the tax base is mobile, that valuing private businesses would be difficult, and that there are legal questions about retroactivity and taxing intangible property.

The numbers. A Stanford study by Benjamin Jaros and Joshua Rauh says at least seven billionaires, with nearly $540 billion in combined wealth, about 30% of the state's billionaire wealth, have cut ties with California. The study estimates the tax would collect $28 billion to $36 billion, about a third of the $100 billion backers claim, while eliminating billions in yearly income tax revenue from people who leave.

The other side. Lead sponsor SEIU-United Healthcare Workers West says the measure would fund health care as a five-year stopgap for federal cuts and dismissed the Stanford research. One poll last month had 46% for and 43% against. An Oct. 27 poll showed support slipping, with Props. 41 and 42, backed by Google co-founder Sergey Brin, polling ahead. If those pass with more votes, they could invalidate parts of Prop. 40. Gov. Gavin Newsom opposes the tax and backs Prop. 42. Opponents say they are preparing a lawsuit if it passes.

What to keep in mind. Hankey's and the economists' views are opposition views, and the Post notes the Stanford figures are estimates. We have not read the study or the letter.

## Source

Original reporting: [New York Post (California Post)](https://nypost.com/2026/11/01/us-news/billionaire-don-hankey-slams-prop-40-after-leaving-california/)