California Thievin'

I was asked in an interview the other day if I thought Nevadans had a libertarian attitude. Nevada lost its libertarian streak years ago, I pointed out. The state’s government budget has grown exponentially.  Government giveaways are common: Elon Musk (Tesla, Boring Co.), Mark Davis (Allegiant Stadium), F1, and now possibly Hollywood studios. But, as long as California keeps being California, that state’s wealthiest will keep moving here I said.

Little did I know the Service Employees International Union (SEIU) filed the 2026 Billionaire Tax Act.  A Las Vegas Review Journal editorial explained, “It’s a California ballot measure that would impose a one-time wealth tax on billionaires. The measure is projected to bring in $100 billion.” For Californians worth $10 billion, the union proposal would amount to a $500 million one-time hit. But, anyone who believes  this tax would be a one time taking is at best naive. 875,000 signatures and this thievery makes the ballot. Since there are only 255 billionaires in California, the masses will no doubt vote to eat the rich.

Medicaid and California’s kids would get the largess supposedly. “This isn’t a higher income or property tax on the state’s wealthiest residents. It is a wealth tax that would hit every asset, including unrealized stock gains and property.”

The WSJ reports, “The new tax would apply to those who live in California as of Jan. 1, 2026, pegged to net worth as of Dec. 31, 2026. That includes stocks, bonds, art and collectibles, vehicles and other assets, excluding directly owned real estate. The billionaires would have five years to pay the bill.”

“It would be the first-in-the-world tax like this on the superwealthy,” Emmanuel Saez, an economics professor at the University of California, Berkeley, said. He “helped” the union develop its plan. He hopes this proposal “would be an example for the world, to be imitated in many places.”   He’s done research that indicates billionaires pay 1.3% in taxes of their net worth. He doesn’t think that’s enough.

“I don’t know that people fully appreciate the vulnerability we face as a state when it comes to our revenue sources,” San Jose Mayor Matt Mahan, a moderate Democrat, told The Wall Street Journal. More than one-third of the state’s tax revenue comes from the top 1% of earners.  

This sort of thing has been done before, as far back as 1696.

If this makes the ballot some of Californians wealthiest will hit the road. Nevada will welcome the. While I don’t consider Nevada libertarian, maybe it is compared to the state next door. But, it’s a low bar.