In California, there has been a push for a billionaire tax for quite some time because 1) Democrats can never confiscate enough of other people’s money; 2) they are beholden to class warfare; and 3) it is the left’s goal in life to destroy America as founded by punishing success.
The state’s Democratic supermajority has finally cleared the petition signature threshold to place this proposition on the ballot for November. This so-called “one-time five percent tax” on billionaires’ net worth is intended to fund ‘healthcare’ and ‘education.’ Sound familiar? It’s yet another promise from Democrats involving a tax increase for commitments that likely won’t materialize in the end.
San Jose Mayor Matt Mahan (D), who is running for governor with the backing of Silicon Valley donors like Sergey Brin, has voiced his opposition to this wealth tax and has provided reasons for his stance:
The sad truth of this is, and this may be the message people need to hear. I don’t think it will be the billionaires and the wealthiest who pay this tax. You’re right that it isn’t just billionaires who are leaving because people don’t believe it’s a one-time tax on billionaires. They assume that the threshold will be lowered by the legislature over time, and it will become a recurring wealth tax.
What that means is, as wealthier individuals, people who own companies, leave the state, it will be the middle class who is left holding the bag, and asked to pay more to cover the existing services and infrastructure maintenance the state needs. And that’s why we’ve got to look at better ways of doing this.
California Democrat breaks ranks with his own party and exposes the “sad truth” about the proposed “wealth tax” on billionaires.
“This may be the message people need to hear…”
“I don’t think it will be the billionaires and the wealthiest who pay this tax.”
“What that means is… pic.twitter.com/ECPslBxI6W
— The Vigilant Fox ? (@VigilantFox) March 17, 2026
Mahan is right: the middle class will bear the brunt of it. Many middle-class residents in the state find themselves in a difficult position since they’ve established their businesses here, built their clientele, and, most importantly, raised their families in this community. It’s not as simple as just packing up and leaving; they would feel trapped if this proposition passes.
This approach is a staple of the Democrats’ strategy. They identify an issue that has voters worried or uneasy, like healthcare and education, stir up their concerns, and then promise to fund improved programs by “taxing billionaires.” It sounds too good to be true—because it is.
Among the biggest advocates for this wealth tax is billionaire environmentalist Tom Steyer. Ironically, if he chose to, he could easily pay the wealth tax today.
Tom Steyer could do something epic: Pay the wealth tax today! He could prove he's ready to fork over $120M to the state by actually doing it.
My latest in @SoCalOpinion : https://t.co/HEnzscgjDC
— Matt Fleming (@FlemingWords) March 9, 2026
This situation mirrors the higher corporate tax that Democrats have advocated for as well. If taxes on large corporations like Walmart and Costco are increased, they will likely pass those additional costs onto consumers. Working-class individuals often shop at these stores because of their unbeatable prices. However, if these companies face higher taxes, their prices could rise, making them more similar to other retail options.
Interestingly—if not surprisingly—Gov. Gavin Newsom opposes this proposal, expressing concerns that it could harm the economy. However, I suspect his stance is also an attempt to position himself as a moderate who doesn’t fully align with every idea put forth by California Democrats. The reality is that he is far from a moderate; he has signed off on nearly all the extreme legislation pushed through by the Democratic supermajority in the state legislature. Under Newsom’s leadership, California has seen the exodus of prominent figures like Elon Musk, Larry Ellison, Larry Page, and Sergey Brin, among others. His support for policies that haven’t benefited the middle class, working individuals, or even billionaires has pushed many residents to leave for states governed by Republicans, such as Florida, Texas, and Tennessee.
With Zuck’s move to Florida, California’s total taxable wealth from billionaires has plummeted to well under $1T from over $2T just a few weeks ago.
The loss of this tax revenue was totally avoidable but is now forever. All because Gavin Newsom stood motionless as this stupidly… https://t.co/lJpzhTkMH6
— Chamath Palihapitiya (@chamath) February 10, 2026
