Progressives in California have been pushing for a new “billionaire tax,” and while it hasn’t arrived yet, the state is already suffering enormous financial consequences.
Like at any other time in history, rich people hear this kind of talk, pack up and leave.
It is estimated that California has lost more than a trillion dollars in the past month alone.
The New York Post reports:
California loses a staggering $1 trillion in wealth in the past month alone due to ‘billionaire tax’ fears: wealth guru
California lost a staggering nearly $1 trillion in wealth last month alone, thanks to fears over the proposed “billionaire tax,” according to one of the state’s wealthiest residents.
The under-fire measure, which even left-wing Gov. Gavin Newsom opposes, would impose a one-time 5% tax on residents worth more than $1 billion starting Jan. 1, 2026.
“Collectively, the amount of billionaire wealth that left California in the last month (!) now exceeds $700 billion,” venture capitalist and former Facebook CEO Chamath Palihapitiya said on X on Friday.
“That means the $2 trillion in California wealth they expected to tax has now fallen to $1.3 trillion and is falling rapidly.
“I wouldn’t be surprised if 2026 ended up with less than $1 trillion in billionaire wealth in California and decades and hundreds of lawsuits,” Palihapitiya said of the enormous sum — which is enough to buy the entire NFL several times over and fund NASA at current annual levels for 40 years.
“A complete and totally unforced error. Where was the governor? Where are our leaders??” he raged.
California Republican Kevin Kiley recently appeared on Newsmax and pointed out that even if this tax were passed, it would not solve the state’s financial problems.
The proposed “wealth tax” is already causing an exodus from California. It turns out that successful individuals would rather not have the government seize their assets simply to create a bigger pot of money for fraud, waste and corruption. pic.twitter.com/Zz1fkO1urq
— Kevin Kiley (@KevinKileyCA) January 3, 2026
Instead of raising taxes, which are already among the highest in the country, California should reduce the size of government and spending. They need to do more to attract business and wealth to the state, rather than scare them.
Above all, the state needs new leadership. It’s amazing that Gavin Newsom has been able to keep his job for so long, despite what he’s done for a once great state.
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