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.”
Just brainstorming here, but what if the Supreme Court interpreted the Equal Protection Clause to apply to taxation in the following way: the rate of a tax cannot depend on the quantity of the thing being taxed? That would mean all state income taxes would have to be at a flat rate,* and any wealth taxes would have to be applied at the same rate to all residents, not just the wealthy, which in turn would make it politically unpopular and less likely to pass.
*Some states already have that restriction in their state constitutions under their uniformity-of-taxation clauses, as interpreted by the state supreme court. The flat-rate restriction would potentially also be applicable to federal income taxes via the so-called “equal protection component” of the 5th Amendment’s due process clause. This would increase economic growth, savings, and investment.
Leftist politicians understand human motivation and they use it effectively. They understand very well the power of envy and always use it to stay wealthy without producing anything.
Thou shalt not covet” is the Tenth Commandment (Exodus 20:17).
When they become millionaires like Bernie Sanders they just tell themselves it’s all for a good cause.
They understand, the suckers fall for it every time.
. True because DJT won’t be around to hate forever so the rich as hate objects is being cultivated. Gavin is on the leading edge of New ideas. Hate is a satisfying emotion when coupled with revenge.
“Gavin is on the leading edge of New ideas.”
The Marxist variety of collectivism is hardly a new idea. It is also a well-documented failure. Knavin Gruesome hasn’t a prayer of being elected President in 2028 unless the entire election is outright stolen. That isn’t a new idea, either, but it is passionately embraced by your woke Dem allies.
At 8:16 Anonymous asks a very astute question. Do billionaires use U-Hauls? No Anonymous they use the
U-Haul’s big brother commonly known as the tractor trailer. Thank you so much for your not so brilliant question. Be not fearful Anonymous. The bong manufacturers will remain in California so your future is secure. Come to think of it that’s not right. All the bong manufacturers have been moved to your most favored nation known as China. Thankfully for your sake the bong supply chain has not been disrupted.
IRS has some tax tips for all you tax cheats
Anybody who thinks they aren’t wealthy enough to ever be affected by a new tax meant for the very richest, is naive.
When the federal incomd tax we now have was finally implemented, only 1% of the population had to pay it.
By WW II, it affected ordinary wage earners.
Once an idea escapes the lips of Obama it becomes a metastasis spreading throughout the land of the woke. California politicians in California our just echoing Obama when they say “You didn’t build that.”
These people persist in the belief that wealth is created by the state and only the state. It’s very simple. You calculate the effect of paying yet another tax for the next fifty years then you take the cost of moving spread over the next fifty years and the result of your calculation will tell you that you will be far and away better off if you pack it all up get the hell out of tinsel town. The billionaires will say, I may have not built all those semi trucks and U-Hauls but I can sure rent all I need. Picture this. As the semi truck is leaving an arm extends from the window and a hand with an extended middle finger says so long California it ain’t been so good to know ya.
Best part is the stupid Californicator Voters who cheer on the “Tax the Rich Mantra” thinking their little Dump of Paradise is going to get funded that way. Hey Dummies, think again. Newscum and Company just use that tag line to get more (eventually everything) from YOU moron. Once the Welfare and Giveaway programs are in place the tax squeeze is going to come from someone. When the High Money leaves (because it is easy for them) your low IQ butt will be the lemon that gets juiced for the BILL. So cheer it on you MORON CALIFORNICATORS and the rest of us will sit back and enjoy the show! HAHA.
Gavin and the golden fleece, Mythological proportions…
“Fleece” is a very appropriate term in this context…
Democrats sure do like stealing other people’s money, at gunpoint. They are quick to demand other people pay more, while refusing to step up themselves to pay their fair share. I can get a list of wealthy Democrats who ought to move to California for the chance to prop up Greasy Gavin’s regime, starting with Soros and Pritzker. Go ahead, California Dems, demand wealthy fellow travelers move to the Golden Shower State.
JB Pritzker in fact grew up on the SF Peninsula.
Self-reliance is not absent in people. It is dormant. As long as government expansion does not create personal friction, most adapt rather than question it.
But when policies become directly burdensome, whether through taxes, regulation, or daily cost increases, the self-preservation instinct activates.
That is the financial version of the “boot on the neck.” The Constitution assumes citizens capable of limiting government before reaching that point.
If we delay awakening too long, correction becomes disruptive rather than deliberate.
Someone give this guy a dose of reality. Please.
We’re supposed to be capable of self-government. That means engaging the argument, not tossing slogans. If I’m missing something, point to it.
. Oliver, you must have enjoyed Sheriff McFadden before the north Carolina general assembly, I think it was?
“The latest billionaire to be chased off may be Meta CEO Mark Zuckerberg, who is reportedly heading for Florida.” ??? Say it ain’t so!!!! Keep that idiot out of our State. One of the architects of the CA mess wants to perpetrate himself on us? NFW.
I marveled at this at the time but never thought it could happen here: In the 70s, I met a young man, a new immigrant to the US — from Denmark. Now even back then, immigrants to the US came from s’hole countries, So I asked him why he came from such a desirable place as Denmark.
Simple. Denmark had instituted a wealth tax. And in a recent year, his uncle owed more in wealth tax than his entire cash income. So, his extended family immediately began making plans to leave.
Denmark eventually repealed their wealth tax.
Those who failed to learn from history are trying to repeat it.
Re: “ The latest billionaire..” Net worth not withstanding, the real estate development in Western Palm Beach County is maddening. Like it Or not, those who are fleeing to Florida for whatever reason will bring their baggage with them. The political battle of the bands going forward, will determine who calls the tune for the dance.
We don’t want that piss ant in Florida either. Keep looking Zukkkerberg.
“One of the architects of the CA mess wants to perpetrate himself on us”
You do understand how widespread that phenomenon is, do you not? It is also far from confined to the very wealthy; sadly recent US history abounds with examples of groups of people recreating the same disastrous policies in their new homes that caused them to flee the old.
“. . . Democrats seek to trap them with a retroactive wealth tax.” (JT)
Seattle’s socialist mayor has a “better” idea: Forced labor. Turn those productive individuals into full-blown slaves of the state —
“We cannot allow big grocery chains to close stores at will!”
IMHO, here is what Pam Bondi said to House of Representatives…
“How dare you complain about child rape when the stock market is up?”
Here is what Democrats cried during Bindi’s comments,
“How dare you bring up the fact under the Trump admin, crime is at a 125 year low, when we want to talk about the Epstein files!!!!!!”
https://modernity.news/2026/02/11/the-numbers-dont-lie-yet-again/
Actually, that’s not what she said. you guys are the ones that want to leave the illegal child rapists in the country.
Child rape, apparently, 30 years ago, whose victims, apparently, could not pick their assailants out of a police lineup.
Pam Bondi was wrong. There is no client list. Or the DOJ put it through a shredder. It’s gone, or never existed, or would be impossible to reconstruct.
Why can”t we move on?
Cause there’s gold in them there hills!
I’m sure the illiterate and criminal invaders allowed to infest CA will become civic minded billionaire entrepreneurs soon. They will more than erase any losses caused by the fleebaggers moving to freer states and countries.
Remember all that angst over Biden preventing social media from showing you all the BS that was never taken off social media?
JT – Hey mister free speech. How come you are an advocate of free speech for me but not for thee?
https://arstechnica.com/tech-policy/2026/02/platforms-bend-over-backward-to-help-dhs-censor-ice-critics-advocates-say/
JT Loves to obfuscate when the news makes him look like a fool. That is the MAGA way, When the facts make you look bad, ignore them and change the subject. Oh look rich people are being taxed in California. Don’t look at that president over their whose wealth increased by $2 billion over the past year.
You spelled there wrong GiGi…
This Idiot wants to be President???
The determination of the democrats to rig elections cannot be underestimated. He may well be “elected”. Plan on it. Portugal is great.
Nice weather? Beautiful ocean?
Can’t an idiot if he’s a governor. You on the other hand …
That makes about as much sense as everything else you’ve said
I love the smell of grain alcohol and crack in the morning…it smells like…like…California.
Your kitchen.
Now Anon, don’t get teste…
Tomorrow’s your favorite dish, tube steak smothered in underwear! Don’t be late and come hungry!
“don’t get teste”
I think this anon would need to purchase one at a used organ store…
“Can’t an idiot if he’s a governor.”
Now there is a patently false assertion profoundly contradicted by numerous obvious current and historical examples…
“. . . base wealth calculations on the *voting shares* of corporate executives. [. . .] [T]hey will be taxed as if *voting shares* amounted to actual wealth.” (JT, emphases added)
Just when you think the Left has reached the nadir of absurdity:
So I own 20% of a company’s A shares (economic value). And 51% of the B shares (voting power). The Left wishes to tax me as if I own 51% of the A shares — of the total economic value of the company. In other words, poof — “wealth” created out of thin air.
I wonder if a bank will let me use that 51% “wealth” as collateral? Or if the market will let me sell it as an “ownership” stake? I suppose I could try — then end up like Madoff.
It occurs to me that this could be a ploy to spread their poisonous ideology to all fifty states, especially the most conservative. It seems to be working in Texas…
US tax system has not been fair since passage of the 16th Amendment, which was designed to tax the few, wealthiest Americans, a direct violation of the other clauses and intent of the Constitution. It is a system which allows for a wealth transfer from one group to another, without regard to benefits received, regardless of the Left’s call for a “Fair Share”; almost half of American households pay no Federal Income taxes, being subsidized by the other half. When everyone pays for Government, spending would be dramatically curtailed. California is just being honest in their attempt to steal from the richest.
I have long wanted Congress to repeal income tax withholding. If your employer were not required to withhold taxes from your paycheck that would force people who have a tax liability to write a check to the IRS before April 15 every year. That may cause them to “feel” the effect of their votes.
But Congress will never do it. I suspect many people would simply not pay their taxes. They’d either not plan for the tax payments, or they’d just choose not to pay. So making employers withhold taxes in employee paychecks turns the employers into de facto confiscation agents for the IRS. That ensures the government gets their paws on the dough. Even if much of it is ultimately “refunded” after April 15, the government had the use of that money for many months. It’s similar to “check kiting” schemes. Which of course are illegal.
Income tax withholding? I have a solution move to:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
do not have a personal income tax on wages or salaries.
Tennessee is your best bet
Don’t hold your breath on WA state. The dems are pushing very hard to make a income tax.
California’s liberal machine calculates the Democrats will win back Washington in 2028. Then the US Government money waste machine will be turned back on. The meaning? They don’t need no stinkin’ billionaires. They will have the biggest one of all. Viva, the NGO.
“California’s liberal machine calculates …” Are you a member of that secret cabal?
Maybe it’s time to buy U-Haul stock?
Billionaires use U-Haul to move?
“Billionaires use U-Haul to move?”
Probably not But when their inane attempt to tax the income and assets of the very rich inevitably fails to dent their budgetary excesses, and they are forced to target residents of progressively (ha!) lower incomes and assets, *those* people will be using U-Haul to move their belongings. “California there you go, plunging into sewer low…”
Key phrase” ” will be using”. But nothing has happened to “lower incomes and assets” population. Can you see ghosts too?
While I usually do not like to reply to /\ A, the lower incomes are already hurt by what has happened in the state. Just look at the cost of living and who it effects. The property taxes, cost of fuel for your car and home and the list goes on and on.
While I usually do not like to reply to anon. But in this case you’re forced – right?
Of course you have absolute proof. BTW, that economic analysis is high school level stuff. But you’re just being theoretical right? And you’re lousy at it.
You should keep ignoring anons.
Don U. Wannano,
People who have suffered under the failed state of CA have gotten fed up with high taxes, high cost of living, regulations, crime and are leaving. Those people who can afford to leave, the middle class are the ones who rent U-Hauls to flee CA to better states. With the introduction of this bill, others know it is only time before they start taxing non-billionaires as the state moves the goal posts. Dont need a college degree to see that one coming.
Well, the other point is this :when they move out of state there’s a good chance that they take their company with them and the jobs. Also, I can’t believe this law would be judged to constitutional. It is certainly an ex post facto law, which is patently unconstitutional.
“when they move out of state there’s a good chance that they take their company with them and the jobs.”
California has already sued wealthy employers who have fled the state, to force them to pay taxes as if they remained residents. Wait until they try to extend that policy to the middle class. That should produce an audible uproar.
No, but their employees might.
Might? What about Penske Truck Leasing, Budget Truck Rental, and Enterprise Truck Rental?
Cut whig98 some slack, he/she/it/they/them are possibly a MAGA supporter so his/her/their/they IQ is probably sub 70.