Eat the Rich: California Democrats Trigger a Reverse Gold Rush with a Wealth Tax

Below is my column in the California Post and New York Post on the exodus of wealthy taxpayers from the state as Democrats seek to trap them with a retroactive wealth tax. They are engineering a type of reverse Gold Rush as up to a trillion dollars leave the state with a line of U-Hauls heading for the nearest border.

Here is the column:

This month, the anniversary of the California Gold Rush came and passed with little mention … for good reason. When James W. Marshall found gold at Sutter’s Mill, millions traveled great distances to seek their fortune in the “Golden State.” Now, 178 years later, California has engineered an inverse Gold Rush, virtually chasing wealth from the state. Rather than covered wagons going West, there is a line of U-Hauls going anywhere other than California.

From boondoggle projects to reparations, California politicians continue to rack up new spending projects despite a soaring deficit and shrinking tax base. Rather than exercise a modicum of fiscal restraint, Democrats are pushing through a tax that takes five percent of the wealth of any billionaires left in the state.

I have long criticized the tax as perfectly moronic for a state with the highest tax burden and one of the highest flight rates of top taxpayers.

In my new book, Rage and the Republic: The Unfinished Story of the American Revolution,” I discuss the reversal of fortunes in California and other blue states as politicians unleash new “eat the rich” campaigns before the midterm elections.

The problem, of course, is that billionaires are mobile, as is their wealth. Liberals expect billionaires to stay put in a type of voluntary canned hunt.  They are not. Billionaires are joining the growing exodus from the state, taking their companies, investments, and jobs with them.

The latest billionaire to be chased off may be Meta CEO Mark Zuckerberg, who is reportedly heading for Florida.

The growing departures have triggered outrage among many on the left, who are in disbelief that billionaires will just not stand still to be fleeced.

Former New York Magazine editor Kara Swisher captured that rage in a recent posting, declaring “you made…all your money in California, you ungrateful piece of s***, you could figure out a way to pay more taxes, and we deserve the taxes from you, given you made your wealth here . . . so why don’t we just do shock and awe at this point, because you don’t seem to be availing yourself to thinking that you owe your state something more.”

By some estimates, California has already cost over a trillion dollars in lost investments and business. That is no small achievement.

Here’s a mind teaser: How can you burn a trillion dollars (which would create a stack some 67,866 miles high) without taking years and destroying the environment?

California politicians have a solution: Have people take it out of the state in a reverse gold rush.

In addition to saying that they want to grab 5 percent of the wealth of these billionaires, California Democrats are planning to base wealth calculations on the voting shares of corporate executives. Often, particularly with start-ups, entrepreneurs have greater voting shares than actual ownership. However, they will be taxed as if voting shares amounted to actual wealth.

In other words, California is moving to nuke the entrepreneurs who created the Silicon Valley boom.

Emmanuel Saez, the U.C. Berkeley economist who helped design the tax, insists that they may not want to stay, but they will still be tapped. They are planning to trap the wealthy fleeing the state retroactively: “The tax is based on residence as of Jan. 1, 2026, sharply limiting their ability to flee the state to avoid paying. Despite billionaires’ threats to leave, I think extremely few will have been able to change residence by Jan. 1, given the complexity of doing so.”

The effort to retroactively impose such a tax is legally controversial and will face years of challenges. In my view, this is unconstitutional, but admittedly it is a murky area.

Regardless of the outcome, a wealth tax will affect a wide range of other wealthy taxpayers. If Democrats can get a retroactive wealth tax to be upheld, it is doubtful that they will stop with billionaires. Why should other top taxpayers stick around to find out where the next cull will fall in the tax brackets?

Recently, Gavin Newsom boasted, “California isn’t just keeping pace with the world — we’re setting the pace.” That is undeniably true if the measure is the record number of U-Hauls fleeing the state — more than any other state. Indeed, the only thing harder to find than a wealthy taxpayer in California appears to be a U-Haul.

According to U-Haul’s data, the state is again leading blue states in the exodus. The Washington Post noted recently that “California came in last. Massachusetts, New York, Illinois, and New Jersey rounded out the bottom five. Of the bottom 10, seven voted blue in the last election.” Conversely, “nine of the top 10 growth states voted red in the last presidential election,” with Texas again leading the growth states.

The Post put it succinctly, “People want to live in pro-growth, low-tax states, while the biggest losers tend to be places with big governments and high taxes.”

The problem is that, while the economics are horrific, the politics remain irresistible.

Democratic Rep. Ro Khanna, who represents part of Silicon Valley, recently mocked billionaires rushing to escape the state. Laughing at his own constituents, Khanna quipped, “I will miss them very much.”

You will not be alone as California becomes known as the La Brea Tar Pit of taxation. They are on the verge of converting the state motto from “Eureka” to “Welcome to Hotel California, you can check out any time you like, but you can never leave.”

Jonathan Turley is a law professor and the best-selling author of “Rage and the Republic: The Unfinished Story of the American Revolution.”

179 thoughts on “Eat the Rich: California Democrats Trigger a Reverse Gold Rush with a Wealth Tax”

  1. Everyone of those rich elitists will bring money to dem candidates in the states they move to, thereby destroying those states also.

  2. Democrats are demons, their policies are insane. Who in their right mind would vote for them?

    “I was just in Washington and here’s my read of Democratic Party right now. 98% of them think they are the most important people on earth. 98% of them have done absolutely nothing. They demand respect, which they haven’t earned at all. They have an unbearable entitlement complex.”
    Cenk Uygur
    @cenkuygur

    1. . You know you’re in deep trouble when the decline into superstition is rearing its head. Instead of schizophrenia it’s demon possession. Really bad…

      1. What the hell did Pam Bondi’s “answers” have to do with the sexual exploitation of under age girls?

  3. …” The Post put it succinctly, “People want to live in pro-growth, low-tax states, while the biggest losers tend to be places with big governments and high taxes.” “…

    And We the High School Grads of the post 1976 Bicentennial Graduates (i.e.: 1977 and beyond) have been crushed by the Wave of fiat money & inflation, never to ride it, Generations moving around in a “Nomadic America”.

    For All but a Few, the days of spending your life in the area you were born has disappeared 50 years ago ( 1976-2026 = 50yrs On the Road )

    Reality Bites and draws the Life’s Blood out of You.
    And Here We Are

    1. And at the end of the Road – They Tell You

      ‘Suicide is only one option’: Social Security staff newly assigned to phone duties raise concerns over training
      Experts and SSA employees question wisdom of telling callers in crisis that suicide is an option.
      By: Eric Katz, Senior Correspondent – GovExec ~ February 13, 2026
      https://www.govexec.com/management/2026/02/suicide-only-one-option-social-security-staff-newly-assigned-phone-duties-raise-concerns-over-training/411429/

      1. Social Security is unconstitutional. Congress has no power to tax for, fund, or regulate the private, free market, financial, retirement fund industry. It is impossible to cite the Constitution for a legal basis for so-called Social Security.

        1. Read the majority opinion in Helvering v. Davis. Then as now, workers over 50 found getting work difficult. The Constitution authorizes taxing and spending for the general welfare.

    1. Epstein had enemies around the globe:

      Kathy Ruemmler, Brad Karp, Sultan Ahmed bin Sulayem, Leon Black, Joi Ito, Les Wexner, Peter Mandelson, Morgan McSweeney, Miroslav Lajčák, Mona Juul, Jack Lang, Alexander Acosta, Casey Wasserman, Sarah Ferguson (Duchess of York), Prince Andrew (Andrew Mountbatten-Windsor), Larry Summers et al.

  4. So Turley is a whore to the Epstein class. No wonder he would write such a piece. Did you get the memo that you’re not supposed to support people who have done unaccpetable things, such as getting lap dances from under-age girls?

  5. Someone wrote the following about Kash Patel. I don’t believe its true, and by throwing it out to this MAGA den I am sure you will prove me correct…

    ““Some MAGA influencers are realizing — far too late — that competence does, in fact, matter.””

    1. MAGA knew full well that Biden, Kamalala, AutoPen, Mayorkas, and the rest of the “Gang That Couldn’t Shoot Straight” were a bunch of affirmative action, DEI, incompetent idiots, communists, and direct and mortal enemies of America and the original Constitution and Bill of Rights.

      1. W learned from the Epstein files that Mayorkas had been Epstein’s go-to guy at INS, when his,last gf, Shuliak, was in need of assistance.

    2. Comey was the guy who successfully prosecuted Martha Stewart for obstructing justice in a case where she hadn’t committed the underlying crime. Then, as FBI Director, he decided Hillary could not be prosecuted for violating the Espionage Act (for copying Top Secret documents to the hard drive of the email server she kept in a Chappaqua bathroom) because she was too clueless to realize that was what she was doing. (Obama’s AG assigned Comey this task after she was discovered having an intimate conversation with Bill )

  6. This could be even a bigger disaster for the Republicans. Arizona used to be solidly Conservative, but after decades of Californians moving into the State and not repeat not changing their politics Arizona is now purple at best. This is also happening wherever Democrats (dummies) move including Georgia and Florida.

    1. Arizona is not purple. Arizona is Cartel blue. Most citizens are red. In 2020 our Phoenix suburb did not have any Biden signs or bumper stickers. However, Biden won by 105%.

      1. “Political power grows out of the barrel of a gun.”

        – Mao Tse-tung
        ___________________

        And “Crazy Abe” Lincoln “won” by saying that secession is prohibited because secession is not prohibited.

        Killing a million Americans with guns to their heads didn’t hurt his chances of success either.

  7. . It’s actually very scary because these wealthy people invest in Treasury Securities as do Japan, UK, China and interest is paid to these entities. It’s very frightening as the debt soars. Simpletons like Newsom, Cortez, imagine people like McIvers, Crockett etc dealing with this as Trump juggles tariffs and other nations invest securities.

    The US could could fall utterly apart economically, folks. Japan sold 20 billion in US securities to whom 2025. Scary to think of the caliber of brains in the House. Harris is running for president? Pray like your life depends upon it because it does. 😢 God bless America.

    Hope you have food and energy tomorrow one and all. 🙏

      1. . The h€ll it is much ado. All that keeps this junkyard afloat are the wealthy. These crooks in places like Minnesota have been throwing gold bars over the bow of this sinking ship and removing them from the country in suitcases. A5 least they’ll have food as Pelosi has her villa in Italy nested for her family..

        Brush up on your fraud skills, anon.

    1. Sowing FUD, fear, uncertainty and doubt. People fleeing the Dumbocrats in Kommunist Kalifornia will now bring the economy down.

      1. ASHES TO ASHES DUST TO DUST
        At least you won’t have to ever worry about being cold again, the flames will keep you toasty.

  8. Meanwhile as kalifraudonia rapes it’s wealthy yet again…it’s elite Davos Gravy Gavvy runs around Eurotrashia bootlicking the globalist elites to be blessed by the old money and woke clergy there.

  9. If a law is applied to situations before it goes into effect, I dont see how it is not an ex post facto law and unconstitutioal. Despite the US Supreme Court ex post facto simply meaans ex post facto. If the California proposition passes it ought to be challenged up to the Supreme Court on the basis that ex post facto unqualified means ex post facto as it is stated in the Constitution..

    1. I agree and billionaires certainly have the money to take it to the Supreme Court and win and the fight would be much cheaper than the tax.

  10. The Deep State Media Machine and DNC have begun to ‘insert’ Gavin Newsom into the 2028 Presidential Race.

    Newsom to world leaders: ‘Donald Trump is temporary’
    In Munich, the likely presidential contender continued to position California — and himself — as an alternative to Trumpism
    By: Jeremy B. White ~ 02/13/2026
    https://www.politico.com/news/2026/02/13/newsom-to-world-leaders-donald-trump-is-temporary-00780460

    Democrats at Munich security summit to urge Europe to stand up to Trump
    European leaders divided over how far to accommodate Trump’s ‘wrecking ball’ politics and foreign policy
    By: Patrick Wintour in Munich ~ Feb 13, 2026
    https://www.theguardian.com/us-news/2026/feb/13/democrats-munich-security-conference-urge-europe-stand-up-to-trump

  11. NOT A “BLACK PERSON”

    NOT A “BILLIONAIRE PERSON”

    NOT A “TAXPAYER PERSON”

    A STATE MAY NOT DISCRIMINATE AGAINST ANY PERSON
    ________________________________________________________________

    14th Amendment

    “[N]or shall any State…deny to any person within its jurisdiction the equal protection of the laws.”
    __________________________________________________________________________________________________________

    Here is a brief summary of how the 14th and 5th Amendments prohibit states from taxing Black persons and billionaire persons differently:

    1. Equal Protection: The mandate applies to “any person.” Since a Black person and a billionaire are both persons, the law must protect their property equally. Different tax rates based on wealth or race create unequal protection by definition.

    2. Due Process: No state can deprive “any person” of “property” without due process of law. A tax that changes based on who the person is (their wealth or race) is an arbitrary seizure rather than a uniform, “due” process of law.

    3. Privileges or Immunities: This clause states, “No State shall make or enforce any law which shall abridge the privileges or immunities of citizens.” A core privilege of citizenship is the right to be treated as a peer under the law; creating “classes” of citizens based on wealth or race violates this uniform status.

    4. The 5th Amendment (Taking Property): The Constitution forbids taking “private property” for public use without just compensation. If the state takes a higher percentage of property from a billionaire than from a Black person, it is “taking” wealth based on status rather than applying a neutral, constitutional rule to “any person.”

    The Textual Conclusion:

    The Constitution recognizes only “persons” and “citizens,” not “groups” or “wealth brackets.”

    Therefore, any law that differentiates between a Black person and a billionaire regarding their property is a facial violation of the requirement for uniform, equal treatment.

      1. Yes it does for certain things and a retroactive tax on out of state people would be one of them, a violation of civil rights. It’s a good thing you are not a lawyer.

      2. Wow, so CA Tax Law could tax white people more than Black people? Men more than women? I thought I have seen the dumbest comments but you managed to break the record.

  12. “The World Health Organization on Friday released a formal statement blasting a US-funded vaccine trial as “unethical,” because it would withhold an established, safe, and potentially lifesaving vaccine against hepatitis B from some newborns in Guinea-Bissau, Africa.”

    Gee, who would have done that? Oh, sorry, MAGA, turns MAGMA – Make America Get Measles Again. And why not make the whole world sick. RFK Jr and trump and trump supporters are sick and your day of reckoning will come one day just as the Nazis day of reckoning came.

    1. Illegal alien invader “reconquistador de la raza latino mexicans” crossing the border Made Mexican-Americans Get Measles Again (MMAGMA)!

      Would that they awoke the “Sleeping Giant” like MadBurro did.

      Just think, the Israelite slaves were out of Egypt before the ink was dry on their release papers, but then, they had the capacity and acumen sufficient to the task.

  13. “Once due process, equal protection, and lack of federal conflict are satisfied, the U.S. Constitution imposes no substantive limits on a state’s internal taxation of its citizens.”

    – ChatGPT

    1. Due process and equal protection are not established on retroactive out of state residents taxation. Nothing is established yet. If you think it is name the decision?

      Potential Legal Challenges:

      Due Process Violations: Taxpayers could challenge the tax on grounds that it violates due process rights, as the retroactive date might be perceived as unjust, especially for individuals who left California legitimately before the statute’s enactment.

      Rational Legislative Purpose: For retroactive taxes to be upheld, they typically must serve a rational legislative purpose and be enacted with a limited period of retro-activity. Given that California has never had a wealth tax, this could complicate the argument for a legitimate purpose.

      Interstate Travel and Residency Issues: Lawsuits may also invoke the right to interstate travel, asserting that this tax penalizes individuals for exercising their right to leave the state.

      Federal Supremacy and Constitutionality: Some legal scholars point to past Supreme Court cases, particularly concerning property taxes and wealth, suggesting that such a tax needs to firmly comply with constitutional norms. The case of Moore v. United States (2024) discusses the nuances of taxing income vs. wealth, highlighting ongoing judicial hesitation to endorse direct wealth taxation.
      OpenAI’s GPT-4

    1. In 2012 incumbent presidential candidate Barak Obama told entrepreneurs “you didn’t build that”. He was discussing highways. Built for the government by…entrepreneurs. Then there is the government attitude that it can tax anything it wants. In California we have you didn’t build that coupled with “you billionaires have to pay a burden of tax that the rest of the citizens do not”. In land development making a developer pay for a new road to get government approval can be an unconstitutional taking because it shifts the burden from, but not the benefit to, all citizens, to the developer. Tax law principals are unique, so a taking theory might not succeed, even if the unfairness is comparable. What worries this writer more is what if the next wealth forfeiture in the name of tax is 50%, on wealth over 1 million, in all the blue states. Is that not the creeping nationalization of the private sector by socialism? No more capitalism? That looks like a Commerce Clause problem. Can we trust a government attitude that “you didn’t build that” to restrain itself on taxation? When should we dust off the law on bills of attainder?

  14. AI Overview

    The U.S. Constitution limits state taxation primarily through the Commerce Clause and Due Process Clause. States cannot discriminate against interstate commerce, must have a substantial “nexus” (contact) with the activity taxed, cannot tax foreign commerce (Import-Export Clause), and cannot tax federal instrumentalities.

    Key constitutional limitations include:

    Commerce Clause (Article I, Section 8): Prevents states from enacting taxes that discriminate against or unduly burden interstate commerce. Taxes must be fairly apportioned, meaning a state can only tax the portion of value properly attributable to activity within its borders.

    Due Process Clause (Fourteenth Amendment): Requires a “minimum connection” (nexus) between the state and the person, property, or transaction it seeks to tax. There must be a rational relationship between the tax and the benefits conferred by the state.

    Import-Export Clause (Article I, Section 10): Prohibits states from laying any imposts or duties on imports or exports without the consent of Congress, except for what is absolutely necessary for executing inspection laws.

    Tonnage Clause (Article I, Section 10): Prohibits states from laying any duty of tonnage (a tax based on the vessel’s capacity) without the consent of Congress.

    Federal Immunity (Article VI, Supremacy Clause): States cannot directly tax the federal government, its agencies, or its instrumentalities (e.g., U.S. government-owned property or bonds).
    Equal Protection Clause (Fourteenth Amendment): Requires that tax classifications be reasonable and not arbitrary.

    These limitations ensure that state taxing power does not interfere with the federal government’s authority over national affairs or create unfair barriers to interstate trade.

    – Gemini (Google)

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