by Barry A. Liebling
In November 2026 California voters will either pass or reject Proposition 40. If the law goes through there will be a wealth tax on billionaires. People designated by the government as “extremely wealthy” will be required to declare if their total assets exceed one billion dollars. Residents who meet the threshold will be liable for a “one-time charge” of 5% of their wealth.
Many leftist politicians in California are campaigning for Proposition 40, most notably Ro Khanna, who wrote an article explaining his rationale.
https://www.wsj.com/opinion/californias-pro-business-wealth-tax-proposition-f8e586dc?mod=Searchresults&pos=3&page=1
The wealth tax proposal is an excellent illustration of the malicious motives and deliberate dishonesty of the progressive leftist mob. The genuine goal of Proposition 40 is to legitimize theft on a grand scale, expand the power of coercive government, and attack individual liberty.
Start with the obvious false claim that the tax would be a “one-time charge.” Anyone who has experience living in the real world knows that is not true. Certainly the designers of Proposition 40 have no intention of limiting their plunder to “one time.” Once a wealth tax comes into being there will be endless “emergencies” where the government needs more money, and a new round of confiscating wealth will be necessary. And gullible citizens, do not worry. You will not be affected. The tax will only fall on people who are too rich, not on you.
Why restrict the assault to billionaires? There are very few of them, and they are guilty of having more money than the leftist elite think they deserve. But once billionaires are designated and legitimized as acceptable targets, the criteria for “much too rich” can be adjusted. What about people who have half a billion dollars in assets? Surely that is a lot more than they really they need. There is no reason to exclude them from the next round of thievery. The standard for deciding who has too much money can be adjusted downward repeatedly. Should millionaires be allowed to keep their property?
What, if anything, is special about a 5% wealth tax? It is designed to seem modest. The victims still get to keep almost everything. How about 6%, 10%, or perhaps 50%? It is easy to open the door but difficult to close it. Nothing is off limits if the malicious mob can get away with it.
A justification enthusiasts offer for the wealth tax is that 90% of the proceeds will be “earmarked for healthcare, the rest for education and food assistance.” Who could be against healthcare, education, or food assistance? The contention is that if stolen money is used for good things thievery is not merely acceptable but praiseworthy. No property is exempt from the appetite of the swarm of human locusts.
Is it acceptable for an ordinary citizen – not part of government – to steal if the property is then used to obtain “good things”? Progressive left intellectuals might say yes, if the confiscator is part of an oppressed class.
And the story gets more interesting when you consider the details of the plan. It is estimated that the wealth tax will reap $100 billion, so 90% leaves $10 billion for other things. That money will go to organizations that administer or are officially involved in the looting. That is a sizable prize for scoundrels.
Now consider how the government will determine exactly what 5% of a person’s wealth is. Will California officials trust billionaires to declare their assets accurately? Of course not. The law designates that a Franchise Tax Board “shall examine all returns” filed under the wealth-tax law and determine the correct amount of tax. Notice that with income tax it is straightforward to see how much money a person takes in. But determining how much money a person’s property is worth is tricky at best and highly ambiguous. You can be sure that there will be interminable bickering between government tax examiners and lawyers hired by wealthy victims.
Again, unwary citizens, the Franchise Tax Board probably does not affect you. But perhaps it does. Once there is a government agency that is charged with assessing the value of private property that agency can be directed toward anyone. Do you want an intrusive government keeping tabs on everything you own? It could then tell you how much you are allowed to keep. Does the existence of a Franchise Tax Board worry you? Think about it.
As of this writing Proposition 40 has not passed. And it is significant that there is a cadre of progressive leftists that are urging voters to reject the measure. They are worried that the wealth tax will motivate rich people to leave California and go to other states with less punishing tax policies. But these big-government boosters are not benign. They are calling for a billionaire wealth tax at the federal level so that rich people in every state would be affected. There is no limit to leftist mischief.
Here is the lesson for those of us who appreciate and value liberty. Pay attention to all proposals to expand what the government does. Its proper role is to protect individual rights and to prevent the use of force and fraud. Implementing a wealth tax is poison.
*** See other entries at AlertMindPublishing.com in “Monthly Columns.” ***