Jeffrey Blehar of National Review Online critiques one of the worst ideas from politicians in the Golden State.
Governor Newsom is about to suffer sharply for his incompetence; now those razor-edged interest groups that he’s juggling are actively gassed up and running. On June 25, it became official that the so-called Billionaire Tax will be on the ballot in California. The ballot initiative was circulated by the SEIU–United Healthcare Workers West union, and it will be backed by its organizing power in November.
It is an impossibly bad idea with obvious negative economic implications: a “one time” extractive tax of 5 percent on every billionaire in the state. A full 5 percent of each billionaire’s total worth above $1.1 billion (including items of estimated historical value) will be automatically expropriated by the state. (It will apply retroactively to anyone who lived in California on January 1, 2026 — so there is no escape now.)
Many had assumed it would be withdrawn from the ballot after some kind of backdoor arrangement between Newsom and the unions, at taxpayer expense. Instead, no deal. …
… So now, Newsom has to put on a new act: A California-only billionaire tax is a terrible idea, he says, but since the voters of his state are going to march off the cliff (and his state is so obviously important), the rest of the nation owes it to California to also commit suicide — because we’re all in this together as a country, aren’t we? In a political pivot truly worthy of a man with his head on a spindle, Newsom now argues that we need a nationwide billionaire tax: “It’s time for a national billionaires’ tax and a new social contract. 10 percent of Americans own two-thirds of the wealth. It’s time for an economic reset for America.” His logic is clear: Those dastardly billionaires who want to flee the wreckage of California should not be allowed to save themselves by moving to Florida.
