California’s push for a new tax on its wealthiest residents is backfiring in a big way, with billionaires packing up and heading out of state. This move has already drained an estimated $1 trillion in wealth from the Golden State, hitting tax revenues hard and shifting the burden onto everyday workers.
The controversy centers on a ballot initiative backed by the Service Employees International Union–United Healthcare Workers West. It calls for a one-time 5% tax on the assets of anyone worth more than $1 billion. Supporters argue the funds would help cover potential cuts in federal healthcare funding.
But critics point out the real-world fallout. Venture capitalist Chamath Palihapitiya, founder and CEO of Social Capital Hedosophia Holdings Corp., put it plainly: “California had $2 trillion of billionaire wealth a few weeks ago, and now 50% of that wealth has left, taking income tax revenue, sales tax revenue, real estate tax revenue, and salaries and income taxes from their staffs.”
These departing billionaires aren’t just taking their fortunes—they’re pulling jobs, investments, and economic activity with them. Palihapitiya added that “California billionaires were reliable taxpayers” and warned that “unless the ballot initiative is pulled, the billionaire exodus will continue, leaving the middle class to foot the bill.”
Even Governor Gavin Newsom has voiced opposition, saying the proposal “is not something to be panicked about but part of a broader concern regarding wealth inequality.”
Still, the measure is on track for the November ballot, and experts fear it could spark even more departures among founders and investors who drive California’s tech and innovation economy.
This isn’t just a California problem—it’s a warning for the rest of America. When states pile on taxes that punish success, they chase away the very people who create wealth and opportunity. The result? Stagnant growth, fewer jobs, and higher costs for the average family. Policies like this undermine the free-market principles that have made the U.S. economy the envy of the world. If California wants to reverse the damage, it needs to focus on attracting businesses and talent, not driving them away with punitive measures.
Newsom wealth tax; FAFO!
Ha, ha, ha!
wonder if greazy hair newscum nephew of piglosi or pelosi depending where u r. will target his own millions of dollar income for the same punishment.
“Wealth Inequity” is slimey politician-speak for socialism.
Now he’ll be able to place his illegal voters in some really nice homes.
Absolutely nobody with more than two brain cells is surprised. This happens everywhere it’s tried. France lost all their millionaires when Hollande tried it.
The problem with taxing the rich is that the rich can afford to leave.
California’s bigger problem isn’t income inequality, it’s IQ inequality. The average democrat socialist is dumb as a post and stealing other people’s money is their primary occupation.
Capitalist and Socialist countries both build walls. The Capitalists build them to keep the masses seeking a better life and freedom out while the Socialists do it to keep them in!!
Didn’t CA try to pass a bill to tax people when they moved out of the state?
So…in ten years, California would take HALF of your assets. A billionaire might be able to sustain the first hit, but he would be CRAZY to sit still and watch it happen a second time. Does this also apply to corporations?