Commentary: Yes, California should tax billionaires' wealth. Here's why

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That shrill, high-pitched squeal you’ve been hearing lately? Don’t bother trying to adjust your TV or headphones, or calling your doctor for a tinnitis check.It’s just America’s beleaguered billionaires keening over a proposal in California to impose a one-time wealth tax of up to 5% on fortunes of more than $1 billion.The billionaires lobby has been hitting social media in force to decry the proposed voter initiative, which has only started down the path toward an appearance on November’s state ballot.

Supporters say it could raise $100 billion over five years, to be spent mostly on public education, food assistance and California’s medicaid program, which face severe cutbacks thanks to federal budget-cutting.As my colleagues Seema Mehta and Caroline Petrow-Cohen report, the measure has the potential to become a political flash point.The rich will scream The pundits and editorial-board writers will warn of dire consequences...a stock market crash, a depression, unemployment, and so on.

Notice that the people making such objections would have something personal to lose.— Donald Trump advocating a wealth tax, in 2000Its well-heeled critics include Jessie Powell, co-founder of the Bay Area-based crypto exchange platform Kraken, who warned on X that billionaires would flee the state, taking with them “all of their spending, hobbies, philanthropy and jobs.” Venture investor Chamath Palihapitiya claimed on X that “$500 billion in wealth has already fled the state” but didn’t name names.San Francisco venture investor Ron Conway has seeded the opposition coffers with a $100,000 contribution.

And billionaire Peter Thiel disclosed on Dec.31 that he has opened a new office in Miami, in a state that not only has no wealth tax but no income tax.

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