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California voters are now being asked to endorse a one-time, confiscatory 5 percent “wealth” levy aimed squarely at residents whose net worth tops $1 billion, with the measure retroactive to holdings on January 1, 2026 and payments due beginning in 2027. The ballot language carves out odd exemptions and repayment schedules but would still sweep in stocks, private business stakes, patents and collectible assets while excluding direct real estate and many retirement accounts.
Backers — mainly union organizers and left-leaning activists — loudly promise roughly $100 billion for state healthcare needs and a one-time fix for budget shortfalls allegedly caused by federal changes, pitching the plan as an emergency rescue for Californians. The proposal is being shepherded through signature drives now, and its authors say the money would be ring-fenced for specific social programs rather than general spending.
This isn’t charity; it’s punishment masquerading as policy. Already we’re seeing wealthy residents and founders repositioning residences and assets to safer tax jurisdictions, a predictable response to a state that now signals it will reach into bank accounts and business valuations at will. The long-term effect is clear: fewer headquarters, fewer start-ups staying in California, and fewer good-paying jobs for middle-class families.
The measure’s retroactive bites and valuation headaches virtually guarantee months, if not years, of litigation that will bleed resources and invite arbitrary assessments by bureaucrats. Taxing intellectual property, illiquid private holdings, and creative assets on an ad hoc valuation opens the door to endless disputes and selective enforcement, undermining confidence in contracts and property rights.
Steve Forbes is right to frame this as a symptom, not a cure: years of irresponsible fiscal and monetary policy have devalued the dollar and raised tensions over who bears the pain, and now the political class wants to seize private wealth rather than restore sound money and fiscal discipline. Instead of addressing runaway spending and easy-money incentives that crush savers and erode purchasing power, elites are reaching for punitive one-offs that reward envy and punish success.
Even some Democrats and state officials are squirming. Governor Gavin Newsom has publicly called the plan ill-conceived, and opponents warn the initiative faces uphill battles both at the ballot box and in court as organizers race to gather hundreds of thousands of signatures. The political fight that follows should not be framed as a contest between rich and poor but between rule of law and confiscation.
Patriotic conservatives should see this for what it is: a slippery slope toward legalized theft dressed up as compassion. We must defend property rights, fight back against retroactive taxation, and demand fiscal sanity from Sacramento and Washington alike. Mobilize voters, support candidates who prize liberty and stewardship over envy, and refuse to let the state turn wealth into a target for political expediency.
