Brian Galle
@bdgesq.bsky.social
Berkeley law prof guy, erstwhile Georgetown, DOJ, & points in between. Mostly boring tax stuff; occasional dollops of nonprofits, law & econ, etc. Could be arguing in my spare time.
January 9, 2026 at 10:22 PM
Yeah, that's generally the rule. See supreme.justia.com/cases/federa...
You can think of it as similar to punitive damages in that the point is to deter state actors from violating the Constitution (assuming you think they internalize harms to their budget), not to make the right plaintiff whole.
You can think of it as similar to punitive damages in that the point is to deter state actors from violating the Constitution (assuming you think they internalize harms to their budget), not to make the right plaintiff whole.
McKesson Corp. v. Div. of AB & T, 496 U.S. 18 (1990)
McKesson Corp. v. Div. of AB & T
supreme.justia.com
January 9, 2026 at 5:08 PM
Yeah, that's generally the rule. See supreme.justia.com/cases/federa...
You can think of it as similar to punitive damages in that the point is to deter state actors from violating the Constitution (assuming you think they internalize harms to their budget), not to make the right plaintiff whole.
You can think of it as similar to punitive damages in that the point is to deter state actors from violating the Constitution (assuming you think they internalize harms to their budget), not to make the right plaintiff whole.
Also, it is very hard to see the logic of how you could do traditional QE if you cannot print money. If you borrow to finance the QE, then, eh, you have not changed the trading volume of government debt. At best you are rearranging the term structure of the debt, probably at a net loss right now.
January 8, 2026 at 10:31 PM
Also, it is very hard to see the logic of how you could do traditional QE if you cannot print money. If you borrow to finance the QE, then, eh, you have not changed the trading volume of government debt. At best you are rearranging the term structure of the debt, probably at a net loss right now.
Finishing up a paper about this effect (and why it's awesome) soon. But actually in this case expectations would be of a vague possibility of a future 1% annual tax.
January 8, 2026 at 5:07 PM
Finishing up a paper about this effect (and why it's awesome) soon. But actually in this case expectations would be of a vague possibility of a future 1% annual tax.
How about a 1% (plus small deferral charge) tax for 5 years? Can I interest you in that?
January 8, 2026 at 3:58 PM
How about a 1% (plus small deferral charge) tax for 5 years? Can I interest you in that?
Yeah we have a little section on this in "Money Moves" wherein our basic take is states should probably decouple from most tax expenditures. Especially higher-rate states. Like, is the optimal subsidy amount for anything really 8 p.p. higher in California?
January 8, 2026 at 4:28 AM
Yeah we have a little section on this in "Money Moves" wherein our basic take is states should probably decouple from most tax expenditures. Especially higher-rate states. Like, is the optimal subsidy amount for anything really 8 p.p. higher in California?
Notably, though, the article fails to mention that it is now too late for a billionaire to leave to avoid the tax.
January 3, 2026 at 12:22 AM
Notably, though, the article fails to mention that it is now too late for a billionaire to leave to avoid the tax.
A decent summary from CBS. They are still doing some news there I guess.
www.cbsnews.com/news/califor...
www.cbsnews.com/news/califor...
California could impose a billionaire tax. Here's how it would work and where the money would go.
Proposed California ballot initiative would impose a one-time 5% tax on billionaires, with the revenue funneled toward health care and education.
www.cbsnews.com
January 3, 2026 at 12:16 AM
A decent summary from CBS. They are still doing some news there I guess.
www.cbsnews.com/news/califor...
www.cbsnews.com/news/califor...
Introduce yourself with what almost killed you:
Hey, what's up? I'm "grading 80 corporate tax exams."
Hey, what's up? I'm "grading 80 corporate tax exams."
Introduce yourself with what almost killed you:
Hi, I'm Rhabdomyolysis in the middle of Yosemite with the nearest trailhead 22 miles away.
Hi, I'm Rhabdomyolysis in the middle of Yosemite with the nearest trailhead 22 miles away.
Introduce yourself with what almost killed you:
HI, I'm 360s across 4 lanes of busy but not slow I-95 traffic
HI, I'm 360s across 4 lanes of busy but not slow I-95 traffic
January 2, 2026 at 4:02 PM
Introduce yourself with what almost killed you:
Hey, what's up? I'm "grading 80 corporate tax exams."
Hey, what's up? I'm "grading 80 corporate tax exams."
Are you a billionaire? Happy New Year! If you're living in California today & the 2026 Billionaire Tax Act passes, you'll pay a one-time 5% tax on your net worth (which you can spread over 5 years if you pay a small deferral charge).
January 2, 2026 at 3:31 AM
Are you a billionaire? Happy New Year! If you're living in California today & the 2026 Billionaire Tax Act passes, you'll pay a one-time 5% tax on your net worth (which you can spread over 5 years if you pay a small deferral charge).
Indeed, not that George Yin. We'd love to have both!
December 31, 2025 at 4:54 PM
Indeed, not that George Yin. We'd love to have both!
Reposted by Brian Galle
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December 31, 2025 at 3:00 AM
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Respectfully, as the co-author of multiple mark-to-market bills, can I suggest that you read them first and then get back to us on whether they "underestimate the...complexity"? Among other tools, you can use retrospective tax (taxing at sale with an interest charge) for volatile or illiquid assets.
December 30, 2025 at 6:21 PM
Respectfully, as the co-author of multiple mark-to-market bills, can I suggest that you read them first and then get back to us on whether they "underestimate the...complexity"? Among other tools, you can use retrospective tax (taxing at sale with an interest charge) for volatile or illiquid assets.
Indeed, and the same general spin on an Auerbach-Bradford retrospective tax works for pretty much any hard to value asset.
December 30, 2025 at 3:21 AM
Indeed, and the same general spin on an Auerbach-Bradford retrospective tax works for pretty much any hard to value asset.
Notional equity shares resolves the governance questions Wojtek raises, as my co-authors & I have explained at (to an economist or other reasonable person) painfully great length:
scholarship.law.duke.edu/dlj/vol72/is...
scholarship.law.duke.edu/dlj/vol72/is...
"Solving the Valuation Challenge: The ULTRA Method for Taxing Extreme W" by Brian Galle, David Gamage et al.
Recent reporting based on leaked tax returns of the ultrarich confirms what experts have long suspected: for the wealthiest Americans, paying taxes is mostly optional. Some of the country’s richest ha...
scholarship.law.duke.edu
December 29, 2025 at 10:15 PM
Notional equity shares resolves the governance questions Wojtek raises, as my co-authors & I have explained at (to an economist or other reasonable person) painfully great length:
scholarship.law.duke.edu/dlj/vol72/is...
scholarship.law.duke.edu/dlj/vol72/is...
Reposted by Brian Galle
Tech Billionaires Threaten To Flee California Over Proposed Vest Tax https://theonion.com/tech-billionaires-threaten-to-flee-california-over-proposed-vest-tax/
December 29, 2025 at 10:00 PM
Tech Billionaires Threaten To Flee California Over Proposed Vest Tax https://theonion.com/tech-billionaires-threaten-to-flee-california-over-proposed-vest-tax/
Yes in the case of capital gains there was some uncertainty about what the Court would do with gains accrued before the 16th Am. was ratified.
December 29, 2025 at 4:13 PM
Yes in the case of capital gains there was some uncertainty about what the Court would do with gains accrued before the 16th Am. was ratified.
Reposted by Brian Galle
As the Times story on the CA Billionaire Tax Act notes, if the Act is adopted in Nov. of 2026 it will impose a tax on all individuals who were resident in CA as of Jan. 1 (i.e., next Thursday). It is very unlikely billionaires can really move before then. Is that constitutional, though? Read on.
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More seriously, as most readers here know I helped draft the CA billionaire tax initiative text and you just can't get out of it by setting up a couple of LLCs in Florida. We have thought about how to block these fake paper moves for 4 years.
Billionaires are considering cutting or reducing their ties to California by the end of the year because of a proposed ballot measure that could tax the state’s wealthiest residents.
December 27, 2025 at 10:16 PM
As the Times story on the CA Billionaire Tax Act notes, if the Act is adopted in Nov. of 2026 it will impose a tax on all individuals who were resident in CA as of Jan. 1 (i.e., next Thursday). It is very unlikely billionaires can really move before then. Is that constitutional, though? Read on.
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The Second Estate: How the Tax Code Made an American Aristocracy share.google/hlFoVuE27pah...
December 29, 2025 at 5:07 AM
The Second Estate: How the Tax Code Made an American Aristocracy share.google/hlFoVuE27pah...
Yeah, as we report in the findings section (based on work by Emmanuel, Danny, and Gabriel, and their excellent grad student), billionaires pay an all-in tax rate of 20% less than the median household. Their share of state tax is almost surely even smaller.
December 29, 2025 at 3:02 AM
Yeah, as we report in the findings section (based on work by Emmanuel, Danny, and Gabriel, and their excellent grad student), billionaires pay an all-in tax rate of 20% less than the median household. Their share of state tax is almost surely even smaller.
Reposted by Brian Galle
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December 28, 2025 at 2:37 PM
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This is the same guy who predicted the streets of Manhattan would be clogged with millionaires' moving trucks, yes?
Just as a reality check, the CBTA would reduce the growth of an avg billionaire's wealth from ~7% to 6% annually for 5 years.
If your COLA got cut by 1%, would you quit & move to FL?
Just as a reality check, the CBTA would reduce the growth of an avg billionaire's wealth from ~7% to 6% annually for 5 years.
If your COLA got cut by 1%, would you quit & move to FL?
“California is on a path to self-destruction,” wrote Bill Ackman, joining opposition to a tax proposal alongside Google’s cofounder and more.
Possible California Wealth Tax Causes Billionaire Freakout: Page, Thiel Threaten To Leave
“California is on a path to self-destruction,” wrote Bill Ackman, joining opposition to a tax proposal alongside Google’s cofounder and more.
www.forbes.com
December 28, 2025 at 1:01 AM
This is the same guy who predicted the streets of Manhattan would be clogged with millionaires' moving trucks, yes?
Just as a reality check, the CBTA would reduce the growth of an avg billionaire's wealth from ~7% to 6% annually for 5 years.
If your COLA got cut by 1%, would you quit & move to FL?
Just as a reality check, the CBTA would reduce the growth of an avg billionaire's wealth from ~7% to 6% annually for 5 years.
If your COLA got cut by 1%, would you quit & move to FL?
So, long story short, it is routine for tax legislation to define the scope of what's taxed with reference to events that occurred during the year. Obviously SCOTUS can reject precedents, but it would likely have to toss a large body of prior cases to find anything problematic about the CBTA.
/fin
/fin
December 27, 2025 at 10:31 PM
So, long story short, it is routine for tax legislation to define the scope of what's taxed with reference to events that occurred during the year. Obviously SCOTUS can reject precedents, but it would likely have to toss a large body of prior cases to find anything problematic about the CBTA.
/fin
/fin
The legislature doesn't even have to say what the rational basis is, as long as there could be one.
Notably, Justice Thomas concurred with the majority, and indeed would have gone even further in finding that there are basically no limits under the Due Process Clause on retroactive taxes.
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Notably, Justice Thomas concurred with the majority, and indeed would have gone even further in finding that there are basically no limits under the Due Process Clause on retroactive taxes.
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December 27, 2025 at 10:28 PM
The legislature doesn't even have to say what the rational basis is, as long as there could be one.
Notably, Justice Thomas concurred with the majority, and indeed would have gone even further in finding that there are basically no limits under the Due Process Clause on retroactive taxes.
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Notably, Justice Thomas concurred with the majority, and indeed would have gone even further in finding that there are basically no limits under the Due Process Clause on retroactive taxes.
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Carlton makes a few key points. For one, it observes that the Court routinely upholds tax rules that only reach back to the beginning of the calendar year, or a little bit before.
Second, it says that retroactive tax rules are permissible as long as they serve some rational basis.
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Second, it says that retroactive tax rules are permissible as long as they serve some rational basis.
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December 27, 2025 at 10:25 PM
Carlton makes a few key points. For one, it observes that the Court routinely upholds tax rules that only reach back to the beginning of the calendar year, or a little bit before.
Second, it says that retroactive tax rules are permissible as long as they serve some rational basis.
/6
Second, it says that retroactive tax rules are permissible as long as they serve some rational basis.
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