switzerland

MILAN — A partial knee replacement in her right leg wasn’t enough to stop Lindsey Vonn from pursuing her Olympic comeback. Neither will a recent left torn anterior cruciate ligament.

Vonn revealed Tuesday she suffered a completely ruptured ACL in a crash last week but remains focused on racing in the Milan-Cortina Olympics.

“If my knee is not stable, I can’t compete and at the moment, it is stable and it is strong,” Vonn said during a virtual news conference from Cortina d’Ampezzo. “… So far so good but we have to take it day by day. But if it remains the way it is now, I think I’m pretty solid.”

The 41-year-old Vonn said she skied Tuesday to test her knee. She is not in any pain and the swelling has gone down, but with bone bruising and additional meniscus damage, she still has to tackle full-speed downhill training runs beginning on Thursday before the downhill competition starts Sunday.

Vonn, who also has hopes to race in the super-G and the team event, said her “intention is to race everything.”

“I am not letting this slip through my fingers,” she said. “I’m going to do it, end of story. I’m not letting myself go down that path. I’m not crying. My head is high, I’m standing tall and I’m going to do my best, whatever the result is.”

Vonn is no stranger to knee injuries. She retired from the sport in 2019 and underwent a partial knee replacement in April 2024. Since announcing her comeback in November 2024, Vonn has already defied expectations by becoming the oldest skier to win a World Cup race when she won at St. Moritz, Switzerland, in December and by making the Olympic team seven years after her retirement.

“I think if anyone can do it, it’s Lindsey,” U.S. teammate Bella Wright said of competing with a torn ACL. “I think we all know how strong of a skier she is, but I think that her mental game is what makes Lindsey Lindsey.”

Vonn was racing at a World Cup event Jan. 30 at Crans-Montana, Switzerland, when she lost control while attempting to land a jump. She slid into the safety netting and was later airlifted to a hospital. While a torn ACL typically sends athletes straight to the operating room, Vonn said surgery was not a discussion.

“The Olympics are the only thing that I’m thinking about,” Vonn said.

Despite the crash occurring so close to the Games, Vonn said her knee feels better now than when she has battled other injuries, including in 2019 when she competed at the world championships without a lateral collateral ligament and three tibial plateau fractures. She still won the bronze medal.

“I know what my chances [at the Olympics] were before the crash, and I know my chances aren’t the same as it stands today,” Vonn said, “but I know there’s still a chance and as long as there’s a chance, I will try.”

Jordan Stolz will be trying to win multiple gold medals in speedskating the Milan Cortina Olympic Games.

(Morry Gash / Associated Press)

Since making his Olympic debut at 17, Stolz has become a star in international speedskating. He was the first man to win three world championships in one year in 2023 and repeated in the 500, 1,000 and 1,500 meters in 2024. He also competes in the team pursuit. U.S. speedskating has several medal contenders, including two-time Olympic bronze medalist Brittany Bowe and gold medalist Erin Jackson, who became the first Black woman to win an individual gold medal at the Winter Olympics in 2022.

The latest victim succumbing to injuries was an 18-year-old Swiss national.

A teenager injured in the fire that engulfed a Swiss Alpine bar during New Year celebrations has died in hospital, according to Swiss authorities, increasing the death toll of one of the worst disasters in the country’s modern history to 41.

Saturday’s death was announced a month after the inferno at the ski resort of Crans-Montana. Another 115 were injured, most of whom remain in various hospitals.

“An 18-year-old Swiss national died at a hospital in Zurich on January 31,” the Wallis canton’s public prosecutor Beatrice Pilloud said in a brief statement.

“The death toll from the fire at Le Constellation bar on January 1, 2026 has now risen to 41.”

Pilloud said no further information would be released at this stage by her office, which is investigating the incident.

Those killed in the disaster were aged 14 to 39, but the majority were teenagers. Only four were aged over 24.

Among the dead are 23 Swiss nationals, including one French-Swiss dual national, and 18 foreigners.

Public prosecutors believe the fire started when revellers raised champagne bottles with sparklers attached too close to sound insulation foam on the ceiling of the bar’s basement.

Authorities are looking into whether the foam conformed to regulations and whether the candles were permitted for use in the bar. They say fire safety inspections had not been carried out since 2019.

Swiss prosecutors have opened a criminal investigation into the owners – French couple Jacques and Jessica Moretti – on suspicion of negligent homicide, negligent bodily harm and causing a fire by negligence.

The court of compulsory measures in the southwestern Valais region on January 12 ordered three months of pretrial detention for Jacques Moretti, but on January 23 ordered his release on bail.

The Crans-Montana municipality’s current head of public safety and a former Crans-Montana fire safety officer are also under criminal investigation.

Following the fire, seriously wounded patients were airlifted to various hospitals and specialist burns units throughout Switzerland and four other European countries.

Switzerland’s Federal Office for Civil Protection told the AFP news agency on Friday that at its last count, as of Monday, 44 patients were being treated abroad.

The Wallis health ministry told AFP that 37 patients were still in Swiss hospitals, as of Monday.

The picture is constantly changing, with patients moving between hospitals for different stages of their treatment, and some patients being readmitted. Some remain in intensive care.

The fire has tested relations with neighbouring Italy, which lost nationals in the blaze and has protested the release on bail of the bar’s owner.

Swiss authorities earlier this week said they would grant the Rome Public Prosecutor’s Office access to evidence gathered.

Lindsey Vonn sat out a World Cup super-G race Saturday after crashing and injuring her left knee a day earlier but remains on track for the Milan Cortina Olympics, her coach told the Associated Press.

“No she is not racing today but preparing for Cortina as usual,” Chris Knight, Vonn’s personal head coach, said in a text message to the AP.

Vonn then posted on Instagram, “Unfortunately, I won’t be able to race today,” adding, “Thank you for all of the love and support I have received. Means the world to me.

“Doing my best right now….,” Vonn concluded with praying hands and fingers-crossed emojis.

Vonn crashed in a downhill in Crans-Montana, Switzerland, on Friday and ended up in the safety nets. After skiing down to the bottom of the course, she was airlifted away for medical attention.

It still wasn’t clear what her injury was.

“I crashed today in the downhill race in Switzerland and injured my left knee. I am discussing the situation with my doctors and team and will continue to undergo further exams,” Vonn wrote on Instagram on Friday.

Vonn, a 41-year-old American, is expected to be one of the biggest stars of the Winter Games, which open next Friday. Her first race comes two days later in the women’s downhill.

Saturday’s super-G was slated to be her final race before the Games.

Crans-Montana event was cancelled after Linsey Vonn was third of first six skiers to crash, but race was deemed safe.

Lindsey Vonn crashed out of a World Cup downhill on Friday that was hazardous to her Olympic medal hopes, though judged safe by race officials and team coaches.

Safe, it was agreed, at the place and exact time that Vonn lost control when landing a jump and spun into an awkward slide into the safety nets, injuring her left knee.

“It was probably good light in the spot where she completely missed the line and did the mistake,” World Cup race director Peter Gerdol said.

Gerdol spoke after the late-afternoon meeting of race and team leaders to debrief the day and detail the next morning’s schedule.

At the meeting in Crans-Montana – starting minutes after Vonn posted on social media her Olympic downhill dream next weekend was alive – a broad agreement was that the race had been safe. Some objected to it being cancelled at all.

About 25 minutes after Vonn crashed as the No 6 starter, with the race still paused, Gerdol and the race jury called it off for safety reasons.

“I feel for those guys, they have a tough job,” United States head coach Paul Kristofic said.

By 10:50am local time on an overcast day in the Swiss Alps, the light had dimmed since the 10am start and was forecast to get worse. It did.

The race may have seemed unsafe because three of the six starters failed to finish, and even leader Jacqueline Wiles barely made a tight final turn that caused one crash.

Still, the Austria coach said his racer Nina Ortlieb’s exit as the first starter, at the same spot as Vonn, was caused by a poor racing line, not poor light.

Roland Assinger later said racing had been much safer than two weeks ago at Tarvisio, Italy, where the women went “110 kilometres an hour (70 miles per hour) through the fog where you can see nothing”.

Assinger’s view echoed the view of Vonn’s teammate, Breezy Johnson, who was caught swearing on a television hot mic while chatting with racers in the warmup area when the cancellation news came.

World champion Johnson recalled the “(expletive) rain in Tarvisio” and added: “Then they are like ‘This is too bad a visibility.’ Like, what the …” Johnson later apologised for her choice of words in a social media post.

Swiss TV commentator Patrice Morisod, who had chuckled on air hearing Johnson’s words live, later said: “If we cancel such a race then we don’t have ski sport.”

What Gerdol and Morisod agreed on was disliking the tight turns into the finish line that sent Norwegian racer Marte Monsen into the fences and almost tricked Wiles.

“It’s not downhill,” Morisod said. “For me, that’s a big mistake for the FIS.”

Gerdol told the coaches’ meeting that the course design will be reviewed before the two-week world championships Crans-Montana will stage in one year.

“In view of the championships next year, we will definitely work on this,” the race director acknowledged.

The 2027 world seems far away when the Milan Cortina Olympics open next Friday, and the marquee women’s downhill is scheduled two days later.

Vonn faces a race to be fully fit for the Olympics she targeted in her remarkable comeback as the fastest 40-something in women’s ski race history.

She might even return on Saturday to start in a super-G on the same hill. “The coach just said he left her on the start list,” Gerdol said, “because he thinks that it could be (possible). Some of the athletes always want to race; this is clear, it is their job.”

ANGIE Best has given her fans the latest update from her hospital bed as she fights colon cancer.

Posting from her hospital bed in Switzerland, Angie revealed she would be starting her second round of chemotherapy in the coming days.

Angie, who was the first wife of footballer George Best and is mum to TV personality Calum Best, seemed upbeat in her Instagram video despite telling her followers, “I can’t function.”

She captioned the video: “All together now, 🎼 just one cornetto…yes they want me to eat sugar ffs 🤦‍♀️ I have to start second round of chemo on Tuesday 😬.”

In the video she showed her nurse waving to the camera and then spoke directly to her fans.

“So I’m back at my favourite place with my favourite nurse, isn’t she just a darling – and she speaks English but she’s Swiss,” Angie explained.

FAMILY UNITED

Sam Womack reveals project she was working on with Angie Best before cancer

ANGIE’S FIGHT

George Best’s 1st wife Angie diagnosed with cancer as son Calum releases video

“I’ve got to gain weight so they’ve got me drinking these awful things [Angie held up a calorie shake]. I can’t find a jelly baby bloody anywhere and the only ice cream in Switzerland is a Cornetto for heaven’s sake.”

Angie then pleaded for help: “Advice needed: I know a lot of you have been through this, but I can’t function, I can’t lift my head up, I can’t brush my teeth, I can’t eat. It’s terrible.”

She coughed as she concluded: “Any advice there, homies?”

Angie also wrote under the clip: “Apparently feeling like this is normal. Nothing normal about it ffs. If you’re suffering right now, we’re here for each other.”

Many rushed to wish her warm wishes, including her son Calum.

“I’m so sorry you’re feeling this way and going through this, it will pass and we come out even better I love you,” he wrote.

Another person added: “You are doing just great Angie , keep up the good work.”

And a third commented: “Well I think you look beautiful as always, have the cornetto, keep fighting and stay strong, sending you lots of love.”

Angie’s EastEnders niece Sam Womack, who herself battled breast cancer in 2022, also shared words of encouragement.

“YES AUNTIE!!!!! Eat eat eat and you always look beautiful,” Sam wrote.

Earlier this month, Calum, 44, took to Instagram to plead for support from his mum who is struggling to afford her treatment, and to tell her fans that her cancer has spread to her liver.

“It doesn’t care where you’re from, how you live, or how healthy you try to be. And now, it’s here – and it’s with my mum,” he said.

Calum said he has set up a GoFundMe page for financial support.

Angie met George Best at a dinner party in LA in 1975 when he was signing to play for the Los Angeles Aztecs, and it was “love at first sight”.

They moved to London in 1976.

When she returned to Los Angeles, George followed her and persuaded her to marry him.

They wed on 24 January 1976 and went on to have son Calum in 1981.

The couple separated the following year and divorced in 1986, following George’s problems with alcohol abuse and domestic violence.

Jordan Chiles might be able to keep the bronze medal she won, then was stripped of, at the 2024 Paris Olympics after all.

On Jan. 23, Swiss Federal Supreme Court sent the U.S. gymnast’s case back to the Court of Arbitration for Sport to re-examine the matter “on the basis of an audio-visual recording” that could provide evidence in Chiles’ favor, the court said Thursday in a news release.

“The Federal Supreme Court acknowledged that this new evidence may justify a modification of the contested award,” Switzerland’s highest court stated. “It referred the case back to the CAS for it to re-examine the situation, taking this new evidence into account.”

Chiles initially was deemed the fifth-place finisher in the women’s floor exercise final on Aug. 5, 2024, but was bumped up to third place after a judging inquiry placed by U.S. coach Cecile Landi gave Chiles an extra tenth of a point.

The decision resulted in a viral moment on the medal stand, as Chiles and U.S. teammate and silver medalist Simone Biles bowed to gold medalist Rebeca Andrade of Brazil.

Days later, however, the CAS ruled that Landi’s inquiry was registered four seconds too late and that Chiles’ original score of 13.666 should be restored. That decision knocked the UCLA star back down to fifth place.

Chiles, with the support of the United States Olympic and Paralympic Committee and USA Gymnastics, filed an appeal of that ruling with Switzerland’s Supreme Court in September 2024. Her appeal maintains that the CAS had refused to allow video evidence she feels would show that Landi’s inquiry was filed within the required time frame.

In its Thursday statement, the Swiss court acknowledged that the video could “lead to a modification of the contested award in favour of the applicants, since the CAS could consider, in the light of this audio-visual sequence, that the verbal inquiry made on behalf of Jordan Chiles had been made before the expiry of the regulatory one-minute time limit.

“The Federal Supreme Court therefore partially overturns the contested award and refers the case back to the CAS for a new ruling, taking into account the probative value of the audio-visual recording in question.”

In a statement emailed to The Times on Thursday, the CAS agreed with the Swiss court’s ruling that “new evidence provided by the athlete after the CAS decision justifies a re-examination of the appeal.”

“During the Olympic Games, CAS renders sporting decisions in a demanding time frame,” the statement read. “CAS cannot reopen a closed procedure without the agreement of all Parties. Following the [Swiss Supreme Court’s] decision, CAS can now ensure a thorough judicial review of the new evidence that has since been made available.”

Maurice M. Suh, one of the attorneys representing Chiles, issued a statement Thursday praising the decision.

“We are delighted that the Swiss Federal Supreme Court has righted a wrong and given Jordan the chance she deserves to reclaim her bronze medal,” Suh said. “… We appreciate that Jordan will receive a full and fair opportunity to defend her bronze medal. She is ready to fight vigorously, and we look forward to helping her achieve that result.”

On the approach to Arosa in the Graubünden Alps, the road is lined with mountain chapels, their stark spires soaring heavenwards; a portent, perhaps, of the ominous route ahead. The sheer-sided valley is skirted with rugged farmhouses and the road twists, over ravines and round hairpin curves, to a holiday destination that feels like a well-kept secret.

On the village’s frozen lake, young families ice skate, hand in hand. A little farther along, on the snow-covered main street, children sled rapidly downhill, overtaking cars. The resort’s mascots are a happy gang of brown bears. And there are Narnia lamp-posts, which turn the falling snow almost gold every evening. Switzerland is replete with ski towns but none feel quite this innocent and childlike, like stepping into a fairytale.

I am here for a week in an apartment with my wife and two kids, as it’s a place my Swiss partner’s parents and grandparents have been returning to for more than a century. What first drew them here? All say the same thing: Arosa is the Swiss mountain village most Swiss don’t even think to visit; a low-key alternative to the box office of St Moritz, Verbier and Zermatt.

The village sits on a high, terraced plateau one hour south of Chur, Switzerland’s oldest city, and is surrounded by dense fir forests, above which rises an amphitheatre of saw-cut summits. The sense is that the out-of-sight village has been secretly occupied – the pretty-as-pie peaks standing sentry – as if the first farmers here back in the 14th century feared the Habsburgs might return at any moment to take back their territories.

This is also storybook Switzerland to a T. To the north is Heidiland, the farm holiday region where Johanna Spyri set her children’s novels. Also one hour away is Liechtenstein, the pipsqueak principality, which brings to my mind the land of Vulgaria in Chitty Chitty Bang Bang. Two hours to the north is Zurich where we arrived, before borrowing my in-laws’ car. If you fancy taking the train, there are options to do the trip from the UK to Zurich in as little as seven hours, with a change in Paris. Arosa can then be reached on the memorably scenic Rhaetian Railway, a journey with some of the Alps’ most glorious in-seat entertainment. Outside, all the drama is provided by a script of high-definition gorges and glaciers.

The Arosa Bear Sanctuary, at the middle station of the Weisshorn cable car, is a good place to start exploring. Even during the residents’ winter deep sleep, the 2.8 hectare den offers a walk-through education in animal welfare in an unlikely setting, and its wooden platforms offer memorable views of the snow-fuzzed summits and pistes that lead off in every direction like a spreadeagled skier.

The refuge is run in cooperation with global animal charity Four Paws and it provides four rescued European brown bears a species-appropriate home. Once held in appalling conditions, including a private mini zoo in Albania, the bears’ compound is now a place to readjust, to feel safe again. For the full Yogi and Boo-Boo experience, I’d suggest visiting in summer.

It’s fair to say my six-year-old daughter fizzes with enthusiasm when the bears are mentioned, but also when we snowshoe later that week into pine forest along the resort’s themed Squirrel Trail. The trail is printed with fresh squirrel tracks and we add our own, feather-pressing our boots into the crisp snow. The flakes fall heavily, as if we’re inside an ornamental snow globe. Then, two red squirrels scurry past with dark-furred yet sparkling tails.

Most days we ski until lunch. All children enjoy one free half-day group lesson for each night’s stay in Arosa with ABC Snowsports School or the Swiss Ski and Snowboard School, but we prefer to explore the mountains as a family. Since 2014, the resort has been connected across the gaping Urden valley with the larger town of Lenzerheide, and like other popular Alpine ski areas, the combined piste map is now a profusion of primary colour squiggles.

But there the similarity ends. British accents are absent. The pistes are largely empty. Strict building regulations, upholding traditional timber aesthetics, mean the village is largely the same now as it was when my relatives first visited. It is Switzerland, but from a half-century ago. At the barn-like Tschuggenstübli, once a cheese dairy on the slopes, everyone crams on to tables to order bündnerfleisch (air-dried beef) and käseschnitte, an upgraded welsh rarebit with melted raclette cheese, pickles and onions.

Afterwards, it’s toboggan time. It strikes me there are almost as many traditional wooden sledges for hire in Arosa as there are pairs of skis, and, from the top of the Kulm Gondola, the only way is down. And at speed. My kids are barely ruffled by the tight, bobsleigh chicanes and, one afternoon, we all howl with laughter as my eight-year-old son hurtles off the track into a marshmallowy drift. He pops back up, grinning, but polar bear white. We repeat the sledge run another half-dozen times.

Another reason for visiting this winter is to stay at the Grand Arosa Pop-Up Hotel, a one-year experiment inside a vacant resort hotel which is open to the end of this season – the concept will continue next year, though details are yet to be confirmed (they also operate another pop-up hotel in Fribourg and a pop-up hostel in Zurich). Clues as to its aesthetic are in the name – this is not a ski hotel in the traditional sense, and certainly not a vintage chalet brimming with geranium window boxes and mounted antlers. More than that, it is probably the Alps’ largest ever pop-up hotel and its interiors are bathed in pastel pink. If you can find me cooler ski accommodation this year, I’m happy to wait.

With a tech-first approach, there is no reception, but self-check in instructions imposed on a poster of a purple bellboy. What might have once been a telephone operator’s room is reimagined as a walk-in guest book, its fan-print wallpaper covered with whimsical, hand-written comments. Velvet curtains drape two symmetrical elevators, then a cloaked red corridor suggests you are somehow walking backstage at a theatre, before revealing a piano observatory and a vintage design cinema. A Wes Anderson film set has been conjured before you. We only drop in for coffee, but I wish we’d stayed.

At the end of our week, my wife mentions to me how sad she is to be leaving. The kids aren’t too happy about it either. Neither am I. It crosses my mind that Arosa, with its sleepy bears, squirrels and surreal pop-up hotel, isn’t what most people come to Switzerland for. Rather, it’s what we’ve been looking for all along.

The trip was supported by Arosa-Lenzerheide. Singles/doubles at the Grand Arosa Pop-Up Hotel, from €117 room-only. For more information, visit myswitzerland.com

In the roiling debate over California’s proposed billionaire tax, supporters and critics agree that such policies haven’t always worked in the past. But the lessons they’ve drawn from that history are wildly different.

The Billionaire Tax Act, which backers are pushing to get on the November ballot, would charge California’s 200-plus billionaires a one-time, 5% tax on their net worth in order to backfill billions of dollars in Republican-led cuts to federal healthcare funding for middle-class and low-income residents.

Critics of the proposal have argued that past failures of similar wealth taxes in Europe prove they don’t work and can cause more harm than good, including by driving the ultra-rich out. Among those critics is San José Mayor Matt Mahan, a tech-friendly Democrat who is contemplating a run for governor.

“Over the last 30 years, we’ve seen a dozen European countries pursue national-level wealth taxes,” Mahan said. “Nine of them have rolled them back. A majority have seen a decline in overall revenue. It’s actually shrunk the tax base, not increased it, and it’s because it creates a perverse incentive and drives capital flight.”

Backers of the measure acknowledge such failures but say that they learned from them and that California’s proposal is stronger as a result.

Brian Galle, a UC Berkeley tax law professor and one of four academic experts who drafted the measure, said if it gets on the ballot, every voter in the state will receive a copy of the full text, a one-page explainer on what it does, and nearly two dozen additional pages of “rules for preventing wealthy people and their army of lawyers from dodging” it.

Many of those rules, he said, are based on historical lessons from places where such taxes have failed, but also where they’ve succeeded.

“If you understand the actual lessons of history, you understand that this bill is more like the successful Swiss and Spanish wealth taxes,” Galle said. “Part of that is learning from history.”

Warnings from Europe

Since the 1990s, several European countries have repealed net wealth taxes, including Austria, Denmark, Finland, France and Germany.

A major example cited by critics of the California proposal is France, which implemented a much larger wealth tax on far more people, including many millionaires. The measure raised modest revenues, which fell as rich people moved out of the country to avoid paying, and the measure was repealed by the government of President Emmanuel Macron in 2017.

In a 2018 report on net wealth taxes, the Paris-based Organization for Economic Co-operation and Development found that European repeals were often driven by “efficiency and administrative concerns and by the observation that net wealth taxes have frequently failed to meet their redistributive goals.”

“The revenues collected from net wealth taxes have also, with a few exceptions, been very low,” it found.

Critics and skeptics of the California proposal say they expect California to run into all the same problems.

Mahan and others have pointed to a handful of prominent billionaires who already appear to be distancing themselves from the state, and said they expect more to follow — which Mahan said will reduce California’s “recurring revenue” beyond the amount raised by the one-time tax.

Kent Smetters, faculty director of the Penn Wharton Budget Model, which analyzes the fiscal effects of public policies, said net worth taxes in other countries have “always raised quite a bit less revenue than what was initially projected,” in large part because “wealth is easy, as it turns out, to try to reclassify or move around” and “there’s all these tricks that you can do to try to make the wealth look smaller for tax purposes.”

A bus in London promotes a campaign by British millionaires advocating for an end to extreme wealth and inequality.

(Carl Court / Getty Images)

Smetters said he expects that the California measure will raise less than the $100 billion estimated by its backers because billionaire wealth in California — much of it derived from the tech sector — is relatively “mobile,” as many tech barons can move without it affecting business.

“Policymakers have to understand that they’re not going to get nearly as much money as they often project from a purely static projection, where they’re not accounting for the different ways that people can move their wealth, reclassify their wealth, or even just move out of the state,” Smetters said. “So far, we only know of a few people — with a lot of money — who have moved out of the state, [but] that number could go up.”

Kevin Ghassomian, a private wealth lawyer at Venable who advises rich clients, said he expects the administrative costs of enforcing the tax to be massive for the state — and much greater than the drafters have anticipated.

On the front end, the state will face a wave of legal challenges to the tax’s constitutionality and its retroactive application to all billionaires living in the state as of the end of 2025.

Moving ahead, he said, there will be litigation from wealthy individuals whose departure from California is questioned or who dispute the state’s valuation of their net worth or individual assets — including private holdings, which the state doesn’t have extensive experience assessing.

Valuating such assets will be “a nightmare, just practically speaking, and it’s going to require a lot of administrators at the state level,” Ghassomian said, especially considering many California billionaires’ wealth is in the form of illiquid holdings in startups and other ventures with fluctuating market valuations.

“You could be a billionaire today, and then the market plummets, and now all of a sudden, you’re a pauper,” he said. “It could really lead to some unfair results.”

Lessons from Europe

Backers of California’s proposal said they have accounted for many of the historical pitfalls with wealth taxes and taken steps to avoid them — including by making it harder for wealthy Californians to simply shuffle money around to avoid the tax.

“There are a lot of provisions that are designed based on what has worked well in other countries with wealth taxes in the modern era, especially Switzerland, and there are also provisions meant to shut down some of the holes in some of the earlier wealth tax efforts, especially the France one, that were viewed as not successful,” said David Gamage, a University of Missouri tax law professor and another of the proposal’s drafters.

Galle said the Organization for Economic Co-operation and Development study found that many of Europe’s historical wealth taxes “hadn’t figured out how to solve the problem of what small businesses were worth,” so were more narrowly focused on publicly traded stock and real estate. “Over time, there was a lot of abuse where people shifted their assets to make them look privately held.”

The California proposal “tries to solve that problem” by including small businesses and other privately held wealth in their calculations of net worth, he said — and benefits from the fact that such wealth has gotten a lot easier to track and appraise in recent years.

Doing so would be a familiar exercise for many California billionaires already, he said, as it is hard to raise venture capital, for example, without audited financial statements.

Backers of the measure said it is harder for U.S. citizens to avoid taxes by moving abroad than it has been for Europeans, and that evidence from Switzerland and Spain suggests differing tax rates between a nation’s individual states do not cause massive interstate flight.

San José Mayor Matt Mahan, who might run for governor, opposes the proposed tax on California billionaires.

(Rich Pedroncelli / Associated Press)

For example, each state in Spain sets its own wealth tax rate, and Madrid’s is 0% — but that has not caused an exodus from other parts of Spain to Madrid, Galle said.

The risk of California billionaires avoiding the tax by simply moving to another U.S. state was further mitigated by the measure’s Jan. 1 deadline for avoiding the tax. Galle said the deadline “was intended to make it more difficult for individuals to concoct the kind of misleading, apparent moves that wealthy people have used in other places to try to avoid a wealth tax.”

Gamage said that “history shows if a tax on the wealthy can be avoided by moving paper around, claiming that you live in another location without actually moving your life there, moving assets to accounts or trusts nominally in foreign countries or other jurisdictions, you see large mobility responses.”

But when “those paper moves are shut down,” there’s much less moving — and “that’s the basis for the California model,” he added.

The outlook

Ghassomian, who said he has been “fielding a lot of inbound inquiries from clients who are just kind of worried,” said it is clear that the proposal’s authors “have done their homework” and tried to design the tax in a smart way.

Still, he said, he has concerns about the cost of administering the tax outpacing revenues, especially amid litigation. Residency battles alone with billionaires whose claims of departing the state are questioned could take “years and years and years” to resolve, he said.

“The revenue has to line up with expenditures, and if you can’t count on the revenue because it’s going to be tied up in courts, or it’s going to be delayed, then I think that creates some real logistical hurdles,” he said.

Smetters said predicting revenues from a tax on so many different types of assets is “really hard,” but one thing that has generally held true through history is that “most countries, even with less-mobile wealth, typically do not get the type of revenue that they were hoping for.”

David Sacks, a venture capitalist and President Trump’s AI czar who decamped from California to Texas, said on the sidelines of the World Economic Forum in Davos, Switzerland, last week that the measure was an “asset seizure” more than a tax, and that the state would be headed in a “scary direction” if voters approved it.

Darien Shanske, a tax law professor at UC Davis and another drafter of the proposal, said he and his colleagues did their best to “look at the lessons of the past, and apply them in a way that makes sense and is generally fair and administrable” — in a state where wealth inequality is rapidly growing and a wealth tax presents unique opportunities.

“Having a tax on billionaires does make particular sense in California because of the large number that live here and the large number who have made their fortune here,” he said.

Shanske said the proposed tax is designed to provide California a way to “triage” soaring healthcare premiums resulting from legislation enacted by the Trump administration and congressional Republicans. The proposal asks for contributions from people who will quickly recoup what they are taxed given the exponential growth of their assets, he said.

Emmanuel Saez, director of the Stone Center on Wealth and Income Inequality at UC Berkeley and another drafter of the measure, said many of the repealed European taxes targeted millionaires while providing loopholes for billionaires to avoid paying, whereas California’s measure is “exactly the reverse.”

He said the measure will raise substantial revenue in part because California billionaire wealth more than doubled from 2023 to 2025 alone, and is “the innovative and first-of-its-kind tax on the ultra-wealthy that the moment requires.”

Thomas Piketty, a French economist and author of “Capital in the Twenty-First Century,” called California’s proposed tax “very innovative” and “relatively modest” compared with massive wealth taxes after World War II — including in Germany and Japan — and said it would not only improve healthcare in the state but “have an enormous impact on the U.S. and international political scene.”

“In the current context, with a deeply entrenched billionaire class, wealth taxes meet even more political resistance than in the postwar context, and this is where California could make a huge difference,” he said. “The fact of targeting the revenue to health spending is also very innovative and can help convince the voters to support the initiative.”

Times staff writer Seema Mehta contributed to this report.