California is once again pushing a plan that could drive some of its biggest job creators out of the state. The so-called “2026 Billionaire Tax Act” would slap a one-time 5% tax on people and trusts worth $1 billion or more. These folks wouldn’t even have to sell anything to get taxed. The state wants to count everything they own—stocks, businesses, and other investments—even if those gains exist only on paper.
This isn’t just about raising money. It’s about control. The people pushing this tax say it’s needed to fill budget holes and pay for healthcare and other services. But let’s be honest—California already has one of the highest tax rates in the country. Somehow, that’s never enough. The state government spends money like it grows on trees, then comes back for more when the bills pile up.
As a military veteran, I know what it means to serve and sacrifice. I also know the value of hard work and building something from the ground up. Many of the people being targeted by this tax started with nothing. Through risk, long hours, and smart decisions, they built companies, created jobs, and pushed American innovation forward. Now, California wants to punish them for their success. That’s not the America I fought for.
The idea of taxing “unrealized gains” is especially dangerous. Imagine being taxed on the value of your house going up, even if you didn’t sell it. That’s what this is. It’s not just unfair—it’s un-American. You shouldn’t owe the government anything until you actually earn money. This tax turns that principle on its head.
Even California’s own governor, Gavin Newsom, says he doesn’t support this wealth tax. That’s saying something, considering how far left he usually leans. Newsom knows this kind of tax could scare off the very people who keep California’s economy alive. But he’s also got national ambitions, so take his words with a grain of salt.
Meanwhile, billionaires like Peter Thiel have already packed up and left. He moved to Miami, where taxes are lower and freedom is respected. Others, like Google co-founder Larry Page, are reportedly considering the same. If just a few of these high earners leave, California could lose billions in tax revenue. That’s because the state depends heavily on the taxes paid by its richest residents. Push them too hard, and they’ll walk.
And let’s talk about the hypocrisy. California politicians like Rep. Ro Khanna act like they don’t care if people like Thiel or Page leave. He even mocked them on social media, quoting FDR about “economic royalists.” But Khanna has taken nearly $800,000 in campaign donations from the same tech sector he’s now sneering at. That’s rich.
Polls show this tax is unpopular with voters. According to one survey, only 14% support taxing unrealized gains each year. Even fewer think stock gains should ever be taxed before they’re sold. Regular Americans understand the basic truth here—you don’t tax money that doesn’t exist yet. You don’t force someone to pay cash on something they haven’t cashed in.
Bottom line: this wealth tax is a bad idea. It punishes success, drives away investment, and won’t solve California’s deeper problems. The state needs to get its spending under control, not squeeze more out of the people who actually create value.
As a veteran and a patriot, I believe in fairness and opportunity. But this isn’t fairness—it’s class warfare. And if California keeps going down this road, it’ll keep losing the very people who made it great in the first place. Other states with lower taxes and more freedom will gladly take them in. And the rest of the country? We’ll be watching closely, because if this kind of tax spreads, no one’s wealth—or freedom—is safe.
