“Tax the rich!”

Democrats have been shouting this from the rooftops for decades. To a large extent, they’ve been successful in convincing millions of Americans that the rich are stealing our nation’s wealth and hoarding it or, even worse, that people who innovate, create, and produce should hand over what they’ve earned to the political class.

If we could only get the billionaires to pay their fair share, the collectivists argue, we could solve all our fiscal problems and have more money for climate change and green energy programs.

Look at the millions who followed Bernie Sanders over the years or those who propelled Zoran Mamdani into power in New York City, both of whom embrace a tax-the-rich approach. Mamdani even went so far as to say that we shouldn’t have billionaires at all. Often, socialists who want to confiscate wealth say it’s about fairness, but they just want more money and more power.

That’s why the Service Employees International Union-United Healthcare Workers West is pushing for a tax on billionaires in California. The measure would impose a one-time 5% tax on Californians with a net worth of more than $1 billion, payable over five years. What’s interesting is that we’re trying something in some parts of the country that’s already failed here and around the globe.

“First, it’s important to note that wealth taxes fell out of style long ago,” John Gustavsson explains at National Review. “In 1990, twelve European countries had a wealth tax. Today, only three remain, with the remaining countries either limiting the wealth tax to certain asset classes (e.g., real estate or foreign assets) or abolishing it altogether. Norway, one of the three countries that has retained its wealth tax, partially offsets the tax’s impact by not taxing estates. And in recent months, calls for the introduction of a wealth tax have been decisively rejected in both the U.K. and France.”

Leftists claim we should follow in Europe’s progressive footsteps, but many governments in Europe are now backtracking from the radical tax-the-rich policies that have stifled growth and prosperity. Now, some Californians want to give it a try without addressing the root of their economic woes, such as reckless government spending.

The Wall Street Journal’s editorial board also weighs in: “California’s real fiscal problem is that revenue can’t keep pace with Democratic spending. The wealth tax won’t fix California’s deficits. It will make the state’s budget problems worse by driving out top earners. The top 1% pay half of the state’s income tax. … Even Mr. Newsom seems to get this. The Governor’s spokesperson says he opposes ‘state-level wealth taxes’ because they drive away affluent people. But California’s high income taxes do too. Notice that Mr. Newsom isn’t opposing confiscatory taxes on principle. With his eye on the White House, look for him to endorse a federal tax on unrealized capital gains, as Joe Biden did.”

The labor movement’s tax grab is a desperate political stunt to make up for the state’s inability to keep its fiscal house in order, despite the negative impact the tax burden will have on the incentive to work, create, and invest in the state. Patrick Gleason of Americans for Tax Reform informs, “Marginal rate cuts on the next income dollar increase the incentive to work — and for people to remain in the state. They are also a discipline on politicians who want to spend whatever revenue they can grab. With lower rates, more money stays in taxpayer pockets without giving the political class a chance to redistribute it to public unions or special interests.”

It’s no wonder, then, that some California billionaires are heading to other states. Fox News reports, “Some of California’s most prominent technology and finance moguls are toying with taking their business out of state. Peter Thiel, the founder of a San Francisco private investment firm, announced that he opened a new office in Miami last week, and venture capitalist David Sacks said he opened an office in Austin, Texas. They mark just two of the wealthiest Californians who are deemed a flight-risk now that a ballot measure that would tax them 5%, just one time, has suddenly gained legitimacy.”

Fiscal conservatives are not the only ones opposing a billionaire tax. The idea is dividing California Democrats as well. "While the idea of a one-time tax on more than 200 people has a long way to go before getting onto the ballot and would need to be passed by voters in November, the tempest around it captures the zeitgeist of angst and anger at the core of California,“ the Los Angeles Times notes. "The controversial measure is already creating fractures among powerful Democrats who enjoy tremendous sway in California. Progressive icon Sen. Bernie Sanders (I-Vt.) quickly endorsed the billionaire tax, while Gov. Gavin Newsom denounced it. The Golden State’s rich residents say they are tired of feeling targeted. Their success has not only created unimaginable wealth but also jobs and better lives for Californians, they say, yet they feel they are being punished.”

California has the resources and the innovation to build a thriving economy. That’s why it became home to tech giants and innovators across many industries. But the failure of politicians to keep the books in order has left the Golden State desperate to make up for losses that now amount to nearly $20 billion.

Confiscating wealth can’t put California in the black. Even Gavin Newsom knows it’s a bad idea. Let’s hope Californians reject the billionaire tax later this year and hold their elected officials accountable for balancing the budget without harming those who contribute the most to their economy.